- Goldman Sachs charged with fraud by US Securities and Exchange Commission
- US housing starts rise 1.6%
- University of Michigan consumer sentiment index tumbles to 69.5 in April from 73.6 in March
- ECB’s Stark: Skeptical of IMF role in Greek bailout
- China’s Hu: To gradually adopt managed floating exchange rate system
- S&P 500 falls 1.6%
- 2-year Treasury note falls 5.7 bp in yield to 0.96%, 10-yr note falls 0.66% to 3.77%
- Oil falls $2.46 to $83.05, gold falls $24 to $1137.
Risk aversion was the trade of the day. Greek woes, fears of a Chinese revaluation and the Goldman fraud charges were a powerful incentive for traders to head to the sidelines. Stops were triggered in all the major pairings, especially those with heavy links the JPY. AUD. CAD, GBP, EUR all came under pressure as traders headed for the exits.
AUD is holding above key 0.9220 support amid whispers that China may be working a 92.00/94.00 DNT.
Chinese bids were rumored ahead of 1.3450 and traders began to cover shorts when the orders were left with banks, bouncing from 1.3472 lows.
Here’s wishing you all successful trades in the week to come. Gerry will be in this seat come Monday.
