- Japanese Q1 Corporate capital spending falls 25.3% yoy.
- Australian April balance of goods and services -A$91 mio.
- RBA’s Stevens sees scope for further rate cuts.
- BOJ’s Shirakawa says fiscal balance needed to stabilise rates.
- Singapore’s Investment fund, Tamasek, reportedly lost $850 mio selling its stake in Barclays earlier this year.
No surprises with Tokyo going against the trend, buying EURJPY off its overnight lows and the other Yen crosses as well. EURJPY looked like a test of 137.00 was on the cards once the Nikkei recovered from morning lows and traders were seen bargain hunting.
However, EURJPY only managed to trade just above 136.60. Good offers in Euro between 1.4190-20 and sellers of GBP and GBPJPY helped put a lid on the morning Yen cross rally. GBPJPY selling led the way in the afternoon as GBP from 1.6310 to 1.6250 in a matter of minutes. It never recovered, staying offered for the rest of the afternoon as Europe looks to test 1.6200. Euro also retraced but not as quick as good buying in EURGBP, was seen lifting it above 8720.
AUDUSD drifted off from the morning highs after a suprise negative number was reported for April’s balance of goods and services. However a UK name was seen buying big amounts on any dip towards 7990 keeping it bid for the rest of the day. Look to see if the 7980-90 area holds into Europe or whether the bid is pulled.
Ranges:
GBPUSD 1.6208 – 1.6340
EURUSD 1.4134 – 1.4190
USDJPY 95.85 – 96.37
EURJPY 135.57 – 136.64
AUDUSD 7982 – 8047
Goodluck,
Sam