• As Jamie mentioned during the NY session, regional Asian central banks on the bid 1.4110/20 but this is generally good directional information rather than huge size. The same banks were selling yesterday at 1.4240/50 level.
• China reportedly selling at 95.30 in USD/JPY during the NY session but there is no guarantee that they’ll be there again if we re-visit that area.
• Expect AUD/USD to be tight between strong technical support at .8075 and heavy selling interest above .8200. I’d expect to see large long-liquidation below .8025 area but no confirmation there.
• EUR/JPY activity expected into the Tokyo fix in 2 1/2 hours. Big EUR toshin maturity slated for this Sunday and if the rollover investment is undersubscribed, this would lead to large EUR/JPY sales. Dealers say that the market is still caught a little short so if the selling doesn’t eventuate, we may see a sharp short-covering rally similar to what happened yesterday.