- China’s main monetary policy priority is still to maintain growth
- Australian business confidence slips 4 points
- Latest RICS housing data shows market still in a slump
- Rumours abounded of further RRR hikes in China
- Tomorrow’s Tankan survey expected to show significant fall in Japanese business sentiment
- NZD falls heavily on poor retail sales data and FinMin speech
- Regional bourses flat on the session
- Gold +0.4% at $1403/oz
The main mover today has been the NZD but it has had very little impact on the other majors. AUD/USD did try to fall in sympathy but AUD/NZD buying supported. The business confidence and housing starts data had no effect in a listless market. Ranges: .9944/67
EUR/USD saw some mild profit taking after a big move higher overnight and this profit taking was even more noticeable in USD/CHF, which saw a 50 pip move, the session’s biggest. There were no news developments or flows/orders to influence the EUR. Ranges: EUR/USD 1.3374/1.3400, EUR/CHF 1.2942/77
Sterling was unaffected by the poor housing data, probably because this is already anticipated. Nevertheless, there might be more of a reaction in early London trade. Ranges: Cable 1.5848/74, EUR/GBP .8433/47
USD/JPY ignored the economic data and the forecasts regarding the Tankan. Ranges: USD/JPY 83.38/55, EUR/JPY 111.67/83
