- Market sees the G20 as a further reason to sell the USD, with the greenback down across the board
- USD/Asia led the way in early trade with USD/KRW and USD/SGD leading the way lower
- Japan Sept trade balance better than expected at JPY 797billion
- China’s statistics bureau says next months CPI will be higher
- Australian PPIhigher than expected at +1.4% QoQ
- RBA’s Stevens relatively bullish on domestic economy, cautious on international prospects
- Regional bourses generally positive, Gold +1%
- Singapore exchange to buy ASX
Many traders were at their desks very early this morning in anticipation of some fireworks after the G20 finance officials met in Korea. The USD fell early on some stop-loss hunting and then settled down before USD/Asia started to fall as the regional centres opened.
EUR/USD opened at 1.3970, 50 pips above its NY closing level, but was unable to break above 1.4000 and so fell back to close its opening gap. Sentiment since then has been very USD-negative and the market has been happy to sell without asking why. Ranges: 1.3935/1.4037, EUR/CHF 1.3630/71
USD/JPY has again been the quietest of the majors, drifting lower but only very slowly. Range: 81.04/45
The AUD has benefitted from the increased risk appreciation in the market. The threat of a currency war seems to have abated somewhat and this is seen as good for China and so good for the AUD. Initial stops were triggered above .9860 before the AUD fell back on talk of a higher Chinese inflation figure in coming days. That was soon forgotten and bullish sentiment was further bolstered by news that the Singapore stock exchange was going to buy its Australian counterpart. Ranges: .9825/.9938
Cable lagged the EUR in early trade but has managed to catch up some after stops were triggered above 1.5730 and again above 1.5750 in the last few minutes. Ranges: Cable 1.5667/1.5760, EUR/GBP .8888/.8920
Markets: Nikkei +0.1%; Shanghai, HK, Korea +1%; Sydney +1.3%. Gold +1% at $1339/oz.
