- BOJ: Sustained JPY rise will affect economic forecast
- AUD falls on lower than expected retail sales and building approvals
- Nikkei +1.25%, HK, Sydney and Seoul all around 0.5% higher.
It has been a quiet session again in the Asian FX market with only some Australian economic data to introduce some volatility.
The prospect of Kampo buying USD/JPY between 86.10/20 encouraged some early buying but the JPY crosses have been surprisingly weak given the rise in the Nikkei and in other regional bourses. AUD/JPY was again the lead pair in terms of volatility but seeing it fall 1% while the Nikkei was 1.75% higher was certainly an unusual occurence.
AUD/USD traded around it’s NY closing level at .9130 for most of the morning until the poor building approvals and retail sales data knocked it down 40 pips. It has since consolidated near its lows, awaiting the RBA. Ranges: AUD/USD .9090/.9142; AUD/JPY 78.50/79.20
USD/JPY closed in NY at 86.40, rallied briefly in the morning after more BOJ comments but fell on AUD/JPY selling. Ranges: USD/JPY 86.29/66; EUR/JPY 113.58/114.15
Cable has been trading with a soft tone for most of the session after quite a few bullish sessions in succession. EUR/GBP’s failure to follow through with its bearish break has discouraged the GBP bulls somewhat. Ranges: Cable 1.5862/1.5900; EUR/GBP .8287/.8300
EUR/USD has drifted lower on EUR/JPY selling after opening at 1.3180. Range 1.3160/85.
Gold $1184/oz, Oil $81/bbl.
