• Australian Q3 export pricesfall 9.6%, import pricesfall 3%.
  • Negative Yen talk see cross/yen higher. AUDJPY at one year high.
  • Australian Treasurer says more housing needed for recovery.
  • Japan PM to make final call on JAL’s restructuring.
  • Japan Investor sentiment index down 8 points.
  • Asian bourses all higher by about 1%, Shanghai up 1.8%.
  • Gold consolidates above 1060.

A slow day with not much in the way of economic data to give direction. The dollar lost ground against the EUR once more with traders taking out the 1.5050 barrier, trading as high as 1.5061 before an Asian CB was seen on top selling. With the CB seen, the topside was defined and traders would not challenge it again, drifting off to 1.5020 area and remaining between 1.5020 -1.5040 for the rest of the day.

Both GBP and AUD followed the EUR higher only to come off with it as well. The GBP found buyers on the pullback, ahead of the data tonight. The AUD was supported back on the dip at the 9250 and via speculative buying of AUDJPY pushing it above 85.00, a one year high. Sellers between 9300 and 9325 still seen on top.

Negative Yen press over the last few days continued, with specs seen selling Yen against a number of currencies. EURJPY inched higher all day, stopping shy of 137.85, the August13 high. USDJPY moved higher from the word go but was unable to move up thru the overnight high of 91.70 with talk of exporters on top.

Ranges:

EURUSD 1.5020 – 1.5061

GBPUSD 1.6606 – 1.6677

USDJPY 91.25 – 91.71

EURJPY 137.15 – 137.83

AUDUSD 9252 – 9295

Goodluck,

Sam