- Japan shows first trade deficit in 22 months
- BOJ Yamaguchi: Deflation appears to be easing
- Australian Q4 wage price index +1.0% QoQ
- Australian Q4 construction work +0.8% QoQ
- RBA’s Glenn Stevens delivers speech on mining boom
- No new developments in Middle East
- Regional bourses little changed on session
- Gold $1400/oz; Oil $95.60/bbl
After a mild flurry early in the session, the market has quietened down and ranges have been very tight for the most part of the afternoon.
EUR/USD closed in NY around 1.3660 and we experienced some more short-covering during the morning session as shorts taken yesterday during Asia, when risk aversion was at its height, reacted to some hawkish ECB comments from overnight. We managed to marginally break above the NY high but with offers lying in wait above 1.3725, momentum waned. Ranges: 1.3645/1.3712
USD/JPY saw some modest buying pre-fixing but these gains were quickly unwound once the Tokyo fix passed. No sign of Kampo but dealers expect some sort of presence on dips. Ranges: 82.51/88, EUR/JPY 112.94/113.59
Cable moved more or less in step with the EUR/USD and the cross consolidated gains above .8450. Ranges: Cable 1.6132/89, EUR/GBP .8453/73
AUD/USD led the way higher during the morning session with prop desks and CTA’s buying ahead of reported ACB and corporate interest. Heavy stops now lie below .9930. Ranges: AUD/USD .9981/1.0034
