- Japan current account surplus 1.153 Trln Yen, better than expected.
- Japan June core machinery orders up 9.7%.
- Japan July M3 money supply up 1.9%.
- Japan’s bank loans +2.1% in July.
- China says RIO Tinto spying cost the country over $100 Bln in excessive charges for iron ore. RIO sold off.
- Australian June housing finance +1.1%.
- Nikkei rises to 10 month highs
- Gold sold off to 950 but recovers slightly to 954.00
- Shanghai Composite doesnt hang on to morning gains, down 8 points at the moment.
The USD reversed some of the gains seen on Friday in USDJPY, with exporter selling coupled with strong Japanese economic data. There was also talk of a semi-governmental entity selling in relation to US coupon payments later in the month. Bids at 97.00 stopped the fall, trading back up to 97.40 in the afternoon. EURJPY lower in tandem, with bids just under 138.00 putting a base under the cross pair. However exporter sells throughout the day stopped any bounce further than138.30.
Buyers at the 1.4150 area once again discouraged any test of that level, with traders happy to take back some short positions for a look above 1.4200. However, EURGBP and EURJPY sellers, limited any further gains above 1.4220. EURGBP slipped back below 8500, with GBP holding strong above 1.6700.
Traders found the Monday morning lack of liquidity as an opportunity to trigger stops in the AUDUSD. It tripped stops under 8440, only to see it trade back above 8400 in the afternoon. Good demand of AUDJPY and NZDJPY saw both currencies perform. Housing data was seen as good, even tho it was below expectations, thus reinforcing expectations of a rate rise in Australia later this year. There are offers just above 84c and more noted at 8440.
Ranges:
EURUSD 1.4166 – 1.4211
GBPUSD 1.6662 – 1.6717
USDJPY 97.04 – 97.75
EURJPY 137.81 – 138.65
AUDUSD 8333 – 8404
Goodluck,
Sam