- Bilateral talks, US and China to work towards more sustainable growth.
- Japan June retail sales -3% yr/yr.
- NZ June new dwelling consents +3%.
- Wal-Mart launces 100 Bln Yen samurai, USDJPY buying on the back of it.
- Australia June new home sales rise 0.5%.
- Gold a couple of dollars higher at 938.70
An early morning sell off in EURJPY by an Asian fund sent the cross from above 134.00 down to 133.40. However demand of Yen crosses gained moment going into the Tokyo fix, coupled with the news that Wal-Mart had launched a 100 bln Yen samurai, saw good USDJPY buying, helping crosses higher. Even though most of the hedging for the samurai would probably have been done, market was spooked and caught short scrambling to cover. EURJPY took out stops above 134.20 to touch 134.35 before reversing on technical selling to trade back 133.50. USDJPY retreated as well and now markets is set on testing bids at 94.00, with reported stops below.
EURUSD found buyers at 1.4130(talk of Chinese interest) for a run towards 1.4200, but was not unable to break as EURJPY sellers weighed on it.
AUDUSD was under pressure early in the day on the back of AUDJPY selling but saw some sort of recovery with demand at the Tokyo fix. Still however, sellers at 8280(a mix of longs looking to exit and traders wanting to establish shorts) capped the move. Buyers between 8200-20 are noted as are stops beneath. If 82c hold then we still may see the 8375 level. Under 8180 tho, will confirm cap in place for now at 8340.
Ranges:
EURUSD 1.4138 – 1.4195
GBPUSD 1.6390 – 1.6469
USDJPY 94.19 – 94.68
EURJPY 133.41 – 134.34
AUDUSD 8228 – 8278
Goodluck,
Sam