- Chinese President returns home, misses G8.
- UK PM Brown says no discussion as yet on USD being replaced as global reserve currency.
- Japan May Current Account surplus shrinks, -34.2%.
- Japan Machinery orders down over 38%.
- Australian Westpac Consumer Confidence Index +9.3 points.
- Australia May owner-occupied housing finance +2.2%.
- Rumors, Asian Sovereign buying EUR under 1.3900.
- Regional Stockmarkets lower, oil and commodity stocks lead the way.
- Gold steady at 923.50
- Chine detains four RIO employees.
A hairy day, with stop triggering the focus on the back of Yen cross selling. Macro funds sold GBPJPY triggering stops sub 1.6080 in GBP only to see it trade back up towards 1.6100. Once again EURUSD held strong with rumored Asian sovereign bids at 1.3870-80 supporting it, which saw small spikes to 1.3910 and contain it in a tight range. It didnt matter how much EURJPY selling there was to be done, EURUSD held in well considering. EURGBP also continued its run higher on the back of a weak GBP.
EURJPY stops were also run over at 131.60 then again under 131.30 with big volumes reported. USDJPY bids were very large under 94.60 with buyers every 10 pips for LARGE, seen in the matching system. USDJPY held above 94.50 until late afternoon when bids were pulled sending it to where we are now.
AUDJPY drove the AUD lower. Not even some better than expected numbers could hold it up. It traded down to 7850 taking out stops under 7865 with it. Rallies back were very small as traders looked to get out of AUDJPY longs.
Ranges:
EURUSD 1.3880 – 1.3921
GBPUSD 1.6059 – 1.6132
USDJPY 94.21 – 94.86
EURJPY 131.00 – 132.00
AUDUSD 7850 – 7897
Goodluck,
Sam