- Inflation in China rises to 3.1%
- Industrial production +16.5% YoY from 17.8% the month previously
- US increases rhetoric again over Yuan value- Forex report could deem them a currency manipulator
- BHP-Billiton again speaks out against the proposed Australian mining tax
- Nikkei +2% after +2.6% rise on Wall Street
- Gold steady at $1222/oz after 1% fall overnight
Pretty quiet session in which we saw an early move higher in EUR/JPY and stops getting tripped in USD/JPY before consolidation set in. Sentiment is generally more positive although the prospect of the US branding China a currency manipulator has dampened the enthusiasm somewhat.
EUR/USD opened at 1.2110, rallied strongly on EUR/JPY buying but has been unable to sustain these gains. Solid sell orders between 1.2150/75 deterred any aggressive buying. Range: 1.2091/1.2146
USD/JPY managed to sneak above 91.70, triggering some light stops in the process, but again momentum was lacking to break any new ground. Ranges: 91.26/73, EUR/JPY 110.45/111.30
Cable has managed to maintain its gains of recent session and the cross seems destined to test supposed bids and support levels around .8150. Ranges: 1.4690/1.4730 and .8222/50
The AUD was tired after its exertions of yesterday and has gradually slipped lower throughout the session with the words “currency manipulator” draining a bit of enthusiasm from the bulls. Real money offers still eyed between .8550/70. Range: .8451/.8501.
Markets: Nikkei +1.7%, HK and Sydney +1.25%, Korea +0.9%. Gold $1222/oz, oil $75.25/bbl.
