- Asian Stockmarkets smashed, Nikkei -3%, ASX200 -3%, Kospi -2.5% as we speak
- Gold lower at 916.50
- Asian CB seen buying EURUSD on the lows.
- Option related buying helps AUD hold above 78c
- Possible WTO case against China.
There was no economic data of interest in Asia today. Risk trades were smashed with momentum funds selling Yen crosses. The news that there might be a case against China by the WTO only added to the selling. Flows were heavy and stop loss selling was the order of the day. There was a mass exodus of AUDJPY where the Japanese retail market is very long and has been for some time. It doesnt seem finished either with more stops reported under the important 74.00 area. AUD was pushed in tandem, taking out stops under 7830, but option bids just above 78c seemed to stop the fall, helping it consolidate and trade between 7810 and 7850 for the rest of the afternoon.
USDJPY saw a mix of stops and bids between 95.25-50 filled dragging down EURJPY to just above 131.50. EURUSD however held firm with reports that an Asian CB was buying at the lows, catching weak shorts out for an afternoon squeeze towards 1.3870 and 132.20 in EURJPY.
Regional Stockmarkets were hit hard, commodity and oil stocks leading the way. Japanese exporters were hit twice as hard as the strength in the Yen added to their problems.
Ranges:
EURUSD 1.3830 -1.3869
GBPUSD 1.6263 – 1.6352
USDJPY 95.09 – 95.94
EURJPY 131.59 – 132.98
AUDUSD 7809 – 7876
Goodluck,
Sam