- Outlook for Australian economy remains strong with latest leading indicators showing continued positive signs
- BoJ sees signs that Japan may exit deflation
- Goldman Sachs say fraud case only involves one individual
- Regional equity markets gain over 1% on average
Ranges have again been very quiet during the Asian session but the EUR has continued to lose ground on the crosses, with EUR/GBP, EUR/CAD and EUR/AUD the notable movers, albeit in relatively tight ranges.
EUR/USD targeted stops below 1.3420 during the morning session and since tripping these, we’ve traded in a very tight 10 pip range. Overall range: 1.3400/42
USD/JPY and EUR/JPY were the main moves this morning as the latter fell 70 pips pre-fix in what we believe was EUR/JPY selling related to a Toshin-type maturity. Ranges: 92.98/93.26, 124.66/125.32
The AUD had a quiet sesion and did not react to the strong leading indicators. Range: .9295/.9326
Cable fell early on GBP/JPY profit taking out of Tokyo but rebounded as EUR/GBP sales began to dominate. Range: 1.6332/84
Markets: Nikkei +1.6%, Kospi +1.4%, Sydney +0.7%, HK +0.2%. Gold steady at $1144/oz.
