- AUD dips initially but then recovers after the latest RBA minutes which suggest a possible extended pause
- BoJ keeps rates unchanged at 0.1%
- Outlook for UK house prices continues to improve according to latest RICS data
- ECB’s Stark: no waning in support for EUR inside Germany
- Greek FinMin: downgrade of Sovereign debt does not reflect recent progress
- Regional stockmarkets flat
It has been a very quiet trading session in Asia, not helped by the fact that China is in the middle of a three-day holiday.
AUD/JPY has again been the most volatile pair, being the outlet for risk aversion in this timezone. It has been up and down in a 70 pip range but ends the session unchanged, just like the regional stockmarkets. AUD/USD re-tested its break-up level at .8550 which managed to hold. Ranges: AUD/USD .8548/99, AUD/JPY 78.12/79
USD/JPY traded in a tight 91.42/69 range, yet again being used merely as a trading tool for cross plays in the absence of any corporate plays.
EUR/USD has traded in a 35 pip range, 1.2197/1.2232. It benefitted early from some mildly positive statements but the market lacked momentum all day. EUR/CHF has slid 50 pips lower 1.3970 to 1.3920 and EUR/GBP has had a quiet .8276/94 range.
Cable took a rest after the big move higher overnight inspired by the OBR statement that UK finances are in better shape than first thought. Range: 1.4731/68
Markets: Nikkei -0.15%, HK, Sydney and Seoul all +0.1%. Gold -$2 at $1222/oz.
