- Option-related stops triggered below 100.50 in EUR/JPY, with a bigger level beckoning at 100.00
- EUR sentiment remains weak with interbank lending continuing to struggle
- Gold and Silver fall heavily overnight, with hedge fund closures being blamed for the selling
- South Korean industrial production -0.4% MoM, lower than expected, as big Asian economies show signs of struggle
- Indonesian central bank sees inflation and the IDR rising in 2012
- Regional stockmarkets regain some ground late in the day to be -0.5% on average
- Gold $1558/oz; Oil 99.50/bbl
EUR/JPY was the lead pair in Asia, opening the session just above technical support at 100.75. The first two mini attempts to break lower proved futile, but as soon as Tokyo opened support was broken and stop-loss sell orders around 100.45 were triggered. Bounces have been anaemic with the market unable to regain the prior support levels. Major optionality beckons at 100.00. Ranges: 100.32/92 with USD/JPY trading 77.77/98
EUR/USD managed to take out some small barriers at 1.2900 when the EUR/JPY selling was at its peak but stalled ahead of supposedly decent-sized take profit orders around 1.2870 and 1.2850/60. More barriers are also touted at 1.2850. The Italian bond auction will be the major risk-event later tonight. Ranges: 1.2886/1.2944
AUD/USD played second fiddle in a 1.0041/99 range. Cable traded 1.5427/61 and USD/CHF .9416/50.
