- Tokyo holiday ensured a quiet session, especially with London also closed today
- USD/CNY fixed at new record low marginally below 6.5000
- HSBC China April PMI steady at 51.8
- Australian housing loans slow
- New Zealand’s latest trade surplus comes in better than expected
- Geithner: US economy recovering
- Singapore’s unemployment rate falls to 1.9% from 2.2%
- Regional stockmarkets fall by up to 1%
- Gold and Silver consolidate below record highs at $1535 and $48.40/oz respectively
It’s been a quiet session during Asian trade with the only movement being brought about by speculation regarding end-of-month fixings later today. Rumour has it that the AUD will be heavily sold as asset managers rebalance due mainly to the higher AUD increasing the value of their Australian holdings and thus shifting the weightings ratios. Research from two big banks suggested that the rumours are unfounded.
AUD/USD stalled again ahead of yesterday’s highs at 1.0947 and fell quite sharply at one stage when the rumour mill was in full flow. Since then we’ve had more quiet consolidation. Ranges: AUD/USD 1.0878/1.0941
EUR/USD tried to break lower along with the AUD/USD but couldn’t generate any momentum. Overnight trade saw big Sovereign players either side of a 1.4775/1.4850 range and Asia, minus Tokyo, didn’t have the muscle or appetite to challenge these levels. Ranges: EUR/USD 1.4802/48
EUR/GBP has also been the subject of much conjecture with talk of heavy resistance near .8925, end-of-month central bank buying and large stops above the market. Ranges: Cable 1.6623/58, EUR/GBP .8899/.8918
USD/JPY has been quiet in an 81.46/65 range. Bank research agrees that there might be big asset manager flows out of USD/JPY later tonight but with semi-official support expected on dips, this selling should be soaked up.
