- The proposed vote on Republican proposal was postponed and will now happen tomorrow
- Japan core CPI +0.4% YoY; unemployment slightly higher at 4.6%; industrial output also disappoints at +3.9% MoM
- Japanese finance officials raise verbal intervention levels
- UK consumer confidence falls to 2-year low
- Australian June private credit -0.1% MoM
- Regional stockmarkets fall by 0.5% on average
- Gold steady at $1615/oz
It’s been another session of waiting on the US debt ceiling with no outcomes forthcoming.
Risk trades have generally fallen with AUD/JPY the main mover. USD/JPY has been unable to manage any sort of a rally despite constant verbal intervention from Japanese officials. Stops below 77.50 were eventually triggered although there has been no follow through. More barriers eyed at 77.00. Ranges: 77.46/86, EUR/JPY 110.82/111.55
EUR/USD fell through the morning session as EUR/JPY selling weighed but plentiful bids below 1.4280 plus EUR buying against the GBP and the AUD have supported. Light stops above 1.4350 were triggered in later trade. Range: 1.4280/1.4363
Cable has traded heavily with the poor consumer confidence number encouraging selling against the JPY and the EUR. Ranges: 1.6322/73
AUD/USD has failed to maintain its gains above 1.1000 and at times heavy selling in AUD/JPY certainly weighed. Much worse than expected private sector credit data didn’t help sentiment. Ranges: 1.0959/1.1011
