- CIC tokeep investment level steady
- Fed’s Lacker: less comfortable with ‘extended period’ language
- Japan’s trade surplus for April grows again on the back of strong Asian trade
- Australia expected to soften proposed mining tax
- Prudential investors to oppose AIA deal
- Regional stockmarkets up by around 0.5%
It has been a reasonably sedate Asian trading session with most of the majors trading in 70 pip ranges. NY closed on its session lows in the EUR/USD around 1.2160 but Asia did not have the firepower to test supposedly strong bids around 1.2150. Real money players were active buyers during the NY session. The statement from the CIC helped the EUR to bounce off its lows as did the fact that regional stockmarkets were at least not sold off. Ranges: 1.2155/1.2245
USD/JPY has as usual been very quiet in a 30 pip range either side of 90.00, moving around with short term sentiment in the crosses. Ranges: 89.86/90.16; 109.20/110.25.
The AUD/USD rallied early in the session on talk of a watering down of the proposed mining tax. Ranges: .8200/88, AUD/JPY 73.70/74.70
Sterling has again been quiet following the lead of the EUR but to a lesser extent. .8400 is looming as pivotal support for the EUR/GBP. Talk that the PRU/AIA deal might not go through has led to speculation that the cable hedges (thought to be substantial) might have to be taken off which would lead to large buying of cable. Ranges: 1.4370/1.4417, .8452/92
Ranges: Nikkei +0.4%, HK +0.5%, Seoul +0.9%. Gold steady at $1215/oz. Oil $71/bbl.
