- PBOC seen selling USD/CNY
- Indonesia returns to investment grade after 14 years
- Indian central bank curbs trading in Rupee forwards
- Solid corporate demand for NZD/USD
- Fed’s Dudley: Doesn’t anticipate further efforts in face of EU crisis
- UK pay deals steady at 2%
- Hedge fund closures being blamed for Gold sell-off this week
- Regional equity markets +0.3% on average
- Gold +1% to $1585/oz; Oil WTI $94/bbl
There has been a gradual sell-off in the USD throughout the day. The actions by the Indian central bank sent USD/INR lower and the Indonesian upgrade sent USD/IDR lower. Surprising selling in the USD/CNY by PBOC proxies also affected USD sentiment.
In the major currencies, it was the NZD leading the way. Solid bids at .7520 earlier this morning set the tone and then the market set about triggering stop-loss buy orders above .7580. The 1% move higher has been slow and orderly and there has been no retrace yet. Range: .7521/97
AUD/USD has followed the lead of the NZD, edging slowly higher through the session in a .9914/84 range.
EUR/USD has had a quiet 35 pip range, moving higher more from light USD bearishness rather than any change in EUR sentiment. Range: 1.3009/44.
USD/JPY 77.76/91 is again at the mercy of cross-flows and corporate bids/offers.
Cable 1.5502/43; USD/CHF .9385/.9406