- NZ unemployment rises to 6% in Q2, a nine year high.
- Chinese Think tank revises 2009 predictions.
- Australian July unemployment rate 5.8%, employment rises 32,200, beats expectations.
- AUDUSD jumps up to 8460 immediately after unemployment data.
- Financial Times report suspected bank fraud, could be China’s larest.
- China’s Central bank says will deploy a variety of tools to tweak monetary policy, Investors sell on liquidity worries.
- Shanghai Composite down 3.5% .
- Nikkei up 1.5%.
- Gold only slightly higher at 962.50
EURJPY was under pressure early and stayed that way until the after the fix. The 136.50 area held firm and a run up above 137.00 was seen. EURUSD followed with a small move from 1.4390 to above 1.4400. The Australian employment data was the catalyst for moves higher. Employment figures were suprisingly strong and AUDUSD ran immediately from 8420 to 8460. Traders saw this as an opportunity to take on risk, with a knock on effect taking the majors all higher. USDJPY up to 95.20, EURJPY above 137.30, EURUSD to 1.4430 and even GBPUSD above 1.7020. Unfortunately, once again, the offers in the AUDUSD above 8470 capped the run up with traders having to cut some longs on the way back below 8420.
A Financial Times article about a Chinese bank fraud, coupled with the Chinese central bank saying they will deploy tools to tweak monetary policy saw the Shaghai Composite sell off more than 3% and risk aversion was back for the afternoon. EURJPY was sold back to 136.60 and EURUSD back below 1.4390 as traders avoided positions ahead of tonight’s ECB/BOE meetings. USDJPY spent the rest of the day trading around 95.00.
Ranges:
EURUSD 1.4384 – 1.4431
GBPUSD 1.6955 – 1.7029
USDJPY 94.76 – 95.22
EURJPY 136.56 – 137.37
AUDUSD 8399 – 8460
Goodluck,
Sam