- Positional adjustment and negative sentiment sees the EUR fall across the board
- Gold makes new highs at $1413/oz
- China books profits on Japanese bills and bonds
- Japan’s Sept current account surplus +24.3% YoY
- China set to announce large trade surplus tomorrow
- Australia’s latest budget forecasts reinforce strong economic confidence
- UK economy: House prices fall more than expected
The EUR has been the main mover during the Asian session, as long positions continue to bail-out pre-G20. The EUR has fallen against all other majors with Sovereign issues in Ireland and Greece undermining confidence. Ranges: EUR/USD 1.3848/1.3927, EUR/CHF 1.3406/53
USD/JPY has been tied into some very tight ranges in recent sessions but one large flow during the Tokyo lunch break sent USD/JPY tumbling 30 pips very quickly. The market has slowly recovered but other pairs like EUR/JPY particularly remain heavy. Ranges: USD/JPY 80.75/81.23, EUR/JPY 112.14/113.08
Sterling has not reacted to the relatively poor economic data but if the rumoured bids at .8570 materialise in EUR/GBP, then we may see cable start to play catch-up with the EUR/USD. Ranges: Cable 1.6071/1.6150, EUR/GBP .8591/.8629.
AUD/USD fell heavily on the initial bout of EUR/USD selling and triggered weak trailing stops below 1.0080. The updated budget forecasts restored the bullish sentiment almost immediately and the AUD rallied back to opening levels, maintaining its dominance over the EUR in particular. Ranges: 1.0077/1.0136
Markets: Nikkei -0.4%, HK -0.3%, Shanghai -0.6%. Gold $1410/oz.
