- G7 and IMF meetings over the weekend do little to assuage worries of curency wars
- USD falls in early trade but recovers most of its losses
- Australian economy: Owner-occupied housing finance +1% MoM, investment housing -3.9% MoM
- Gold rallies $10
- Nikkei closed; Shanghai gains by 2.5%
All of the action happened in early trade and the market has been in the doldrums for the last 5 hours.
EUR/USD opened 50 pips above its 1.3935 NY closing level but despite numerous attempts has been unable to establish a stranglehold above 1.4000. Range: 1.3960/1.4012
USD/JPY held steady in early trade as the JPY crosses made some gains after Japan seemingly received support (or at least no criticism) from the G7 for its recent intervention. This didn’t last as dealers took advantage of thin markets to take out barrier options at 81.50 and stops just below. Range: 81.40/82.12
The AUD has also been unable to re-challenge last weeks high although pullbacks remain limited. Central bank and government comments suggest that the authorities are unwilling to get involved in slowing down the AUD rise. Ranges: .9860/.9906
Cable 1.5929/62, EUR/GBP .8762/79
Markets: Shanghai +2.5%, HK +1.25%, Kospi flat. Gold $1353/oz
