Late yesterday through the early part of the Asian session it was risk aversion that held the reins. Then the RBA bought more AUD and the Japanese hinted they may intervene,;then it was “let’s cover our shorts” in EUR/JPY. An abortive stock rally in New York fizzled and since then, the market has been trending sideways. Conviction is lacking and dealers may just retreat to the sidelines, awaiting fresh information.
Later today we will get the monthly budget figures from the US; prepare yourself for the biggest monthly deficit in history. Tomorrow we get retail sales. Another disaster is anticipated. The G20 kicks off its gab-fest tomorrow as well. So much to look forward to…
