- Asia has consolidated the big overnight moves with most of the majors trading in 30 pip ranges
- The AUD rallies as details of the new mining tax agreement emerge
- German banks considered safe in EU bank stress test
- Regional stockmarkets flat, oil and gold consolidate overnight losses
Asia has had a very quiet session with traders unwilling to build on the big overnight moves.
The AUD was again the main mover, making up some of the ground it lost overnight against the EUR and the GBP. AUD/USD rallied from .8450 to .8480 as details emerged on the new mining tax and it rallied again after the mining stocks opened higher but momentum has fizzled out with traders unwilling to hold positions heading into the weekend. Ranges: .8447/.8510
USD/JPY opened around 87.60 but moved higher on AUD/JPY buying and also fears that the BoJ might intervene. There was talk overnight that they were checking prices when the market was at 87.00. One Japanese bank said overnight that the chances of actual intervention are low whereas Morgan Stanley see an increased liklihood. Ranges: 87.54/88.21, EUR/JPY 109.58/110.41
EUR/USD has been quiet inside a 27 pip range with EUR/JPY buying being balanced out by profit taking in EUR/USD. Range: 1.2503/30.
Cable has been similarly quiet in a 1.5157/97 range, with the Asian session high slightly surpassing that in NY. Sovereign offers have been noted above 1.5250 and there is also talk that similar offers are capping presently around 1.5200. EUR/GBP traded .8241/54.
Markets: Nikkei +0.3%, All Ords +0.2%, Kospi +0.2%, HK -0.8%. Gold $1207/oz, Oil $73.30/bbl
