- China’s Sept trade balance lower than expected at $16.9 billion
- USD/CNY set at new record low level
- Japan’s FinMin Noda: Korean leadership of G20 could be threatened by FX intervention
- Strong Japanese core machinery orders surprise
- Australian consumer confidence rises by over 3%
- UK consumer confidence falls sharply
- Regional bourses give back early gains to finish mixed
- Gold gains 0.75%
EUR/USD was the main mover driven initially by EUR/GBP and EUR/JPY flows and also by stop-loss buying above 1.3935. The market is still focussed on the Fed and its QE2 and the EUR is the main beneficiary. USD/Asia continues to trade off recent lows, giving ACBs less reason to intervene. Ranges: EUR/USD 1.3913/78, EUR/CHF 1.3320/60
USD/JPY has oscillated with cross flows inside a 25 pip range. The market has tended to ignore comments from FinMin Noda regarding Korean intervention but the exact same logic will make it extremely difficult for Japan to intervene. Ranges: USD/JPY 81.74/82.00, EUR/JPY 113.82/114.48
The GBP struggled early in the session as some EUR/GBP buying flows emerged following the poor consumer confidence data. Cable managed to rebound back to its NY close but the sentiment towards the pound, especially on the crosses, remains bearish. Ranges: EUR/GBP .8802/39, Cable 1.5775/1.5828
The AUD has had a fairly quiet day inside a 30 pip range, .9857/88..
USD/CHF sits close to presumed barriers at 95.50 with heavy stops seen just below there.
Markets: Nikkei +0.3%, HK -0.25%, Seoul flat, Shanghai flat. Gold $1357/oz.
