- NZ Q3 GDP up 0.2%, slightly lower than the expected 0.3%… NZD slips thru 70c
- NZD falls, AUD follows.
- NZ FinMin English says numbers encouraging but more needs to be done.
- Geithner says risk at the moment is that banks are not lending enough.
- Asian bourses slightly higher, ASX200 up 0.6%, Kospi up 0.15% and Shanghai up 0.5%, Nikkei closed.
- Gold trading at 1085.00
A very slow day, with NZ providing some morning volatility after the release of its Q3 GDP number. It came in under expectations at +0.2%, which saw the NZD slip down from 7025 to 6970. This was a catalyst for the AUD to test the bids lower in the 8740-50 area. The 8740 level held and added support via AUDNZD buying, saw a small short squeeze was seen back up to 8780 by midday, coinciding with a move lower in USDJPY to 91.50 support. It spent the rest of the day drifting inversely to movements in USDJPY.
With Japan on holidays, orders were scarce and flows were virtually non-existant. The 91.50 level held on a small pullback from the 91.85, but with orders left overnight above 92.00, traders were reluctant to push it higher. Same story with EURJPY, sell orders above 131.00 capped proceedings, trading in a 130.60-90 range.
An early morning push lower below 1.4250 in EURUSD in tandem with AUDUSD was short lived, as a lack of liquidity and flows saw it back above. Sellers noted above 1.4275 kept it capped in an otherwise dull day.
Ranges:
EURUSD 1.4236 – 1.4276
GBPUSD 1.5936 – 1.5978
USDJPY 91.53 – 91.86
EURJPY 130.57 – 130.92
AUDUSD 8740 – 8782