- NZ House price index up 1% in July, median house price unchanged.
- NZ retail sales up 0.4% in Q2.
- Bullish comments from RBA’s Glenn Stevens.
- AUDUSD shoots higher on the back of th RBA comments.
- Japan June tertiary industry index rises 0.1%, well above expectations.
- BOJ minutes from last month’s policy meeting, emergency credit program may be extented.
- Gold slightly higher at 955.70
- Shanghai composite down 2%
There was some early demand for Yen crosees heading into the Tokyo Fix, EURJPY up towards 136.50, dragging EURUSD with it to just above 1.4300. But that demaned quickly abated, with exporters selling USDJPY, putting pressure on it for the rest of the day. The Shanghai Composite down 2% also added to the selling pressure of Yen crosses. EURJPY slipped below 136.00 and back towards last night’s lows as weak longs gave up the fight. USDJPY was under pressure all day with no real bounce seen at all. It tested 95.00 only a while ago, with reported bids at 94.80.
Both NZD and AUD saw some solid morning gains. The NZD after the retail numbers and the AUD running up on bullish comments from the RBA. However, talk of option related selling at 8480 and a sell off on the Shanghai Composite, saw longs back peddling with the rest of the Yen crosses. Weak intraday longs were cut under 8430 in the AUDUSD with 8480 topside, now seen as the level to break before further gains.
Ranges:
EURUSD 1.4155 – 1.4303
GBPUSD 1.6552 – 1.6606
USDJPY 95.03 – 95.46
EURJPY 135.51 – 136.45
AUDUSD 8405 – 8477
Goodluck and have a good weekend,
Sam