- $447 billion earmarked to stimulate jobs in the US
- US Treasuries fall after speech, equity markets rise, Gold steady, USD slightly lower overall
- China’s CPI fpr August 6.2%, down from 6.5% in July but still slightly higher than expected
- Japan Q2 GDP -2.1% annualised; CapEx revised down
- Japan FinMin: Will tell G7 that decisive steps need to be taking to curb speculation in JPY
Very quiet session again in Asia, with Obama’s jobs speech and the Chinese CPI passing almost without notice. There is some growing expectation that the BOJ might use the G7 FinMin meeting in France to make a statement regarding Yen policy.
EUR/USD opened at 1.3890 and has been well supported by profit taking and dip-buyers ahead of more option barriers at 1.3850. Some USD selling was noted after the jobs speech but interest and momentum has been low. Ranges: 1.3880/1.3936
AUD/USD edged higher through the morning especially after the Obama speech when it seemed to trigger some short term stops, but when the Chinese CPI failed to generate any sort of a reaction, the day was then done. Ranges: 1.0575/1.0635
USD/JPY traded in a tight range despite plentiful speculation that we may hear some policy statement re intervention after this weekends G7 FinMin meeting. Range: 77.40/60
USD/CHF .8706/52; Cable 1.5955/90
