- News of protestor death in Iran spooks market.
- Citi Bank puts out sell recommendation on EURUSD, target 1.3350.
- Asian Stockmarkets trade lower, Nikkei down 2.5%.
- Japanese finance Minister, Yosano reiterates, USD to remain reserve currency.
- Analyst Robert Pretcher sees US losing AAA rating by end of 2010.
- RBA publishes Minutes from June 2nd meeting.
- BOJ uprgrades assessment of its economy, keeps rates on hold at its Monetary Policy meeting today.
Some early morning spooks out of Iran got the ball rolling as Yen cross selling lead the way. EURJPY fell quickly from 134.80 to 134.30 with USDJPY traders reporting large volumes in USDJPY sellers weighing on crosses. Liquidation of the yen crosses was evident throughout the day as Stops were triggered under 97.00 in USDJPY, 134.00 EURJPY and technical traders sold 1.3800 in EURUSD(technical head and shoulders support). EURO found support at 13750 and via EURGBP buyers to hold and bounce back above 13800, however continual USDJPY weakness throughout the day saw EURJPY still remain at its lows and under pressure. There are good EURJPY bids reported in the 133.00-10 area and USDJPY bids between 96.30-50 which Im sure Europe will attempt to flush out.
AUDUSD also fell victim to cross selling. AUDJPY fell from 77.80 back towards the low 76.00 area dragging the AUDUSD back thru 7930 and triggering stops under 79c. There was continuous liquidation of the long AUDJPY posittions over the Asian session. Support was seen after the release of the RBA minutes at the 7870 area helping it trade back above 79c but finds itself in trouble if it closes under 7930.
Regional stockmarkets were all trading lower today, Nikkei -2.6%, ASX200 -1.6% and Kospi down 1.2% as we speak.
Ranges:
EURUSD1.3747 – 13820
AUDUSD 7860 -7954
GBPUSD 1.6213 – 16312
USDJPY 96.51 – 97.90
EURJPY 133.15 – 135.00
Goodluck,
Sam