The threat of intervention was enough to dissuade any attempts to take the JPY higher during the Asian trading session
- Overnight markets were rattled by the twin hits of an Irish downgrade and very poor US housing data
- Japan’s trade surplus more than doubled from a year earlier, thanks in large part to the strong JPY, but the rate of exports growth also slowed, again attributable to the JPY strength
- Japan July corporate services prices -1.2% YoY
- Australian Q2 construction work +3.5% QoQ
- Australian Independent MPs who will decide next Government, support the mining tax
- Japanese PM Kan wants to show strong response on Yen soon
- Regional stockmarkets 1% lower
The fear of intervention in USD/JPY was enough to encourage some mild profit-taking in it, and in the various JPY crosses. USD/JPY closed in NY at 84.20 and has drifted higher throughout the session albeit amid relatively poor momentum. Ranges: USD/JPY 84.12/50; EUR/JPY 106.24/99.
EUR/USD opened at 1.2630, having been knocked lower in late NY trade after news of the Irish downgrade. EUR/JPY profit taking has been the main influence during the local session. Ranges: EUR/USD 1.2627/69, EUR/CHF 1.2024/61
Cable has followed the moves in EUR/USD with EUR/GBP trading in a very tight range. Ranges: Cable 1.5401/48, EUR/GBP .8195/.8208.
The AUD/USD has traded in an .8820/69 range, remaining unaffected by the minor economic data.
Markets: Nikkei, HK, Kospi, All Ords and Shanghai all around 1% lower. Gold unchanged in Asia $1233/oz, similarly oil at $71.80/bbl.
