Noteworthy News:
- EUR/JPY the key in Asia
- Citibank causing more headaches
- Latest from the RBA not all doom and gloom
- China worlds biggest M&A player so far this year
- M2 making a comeback in the US, sending positive signals
- ECB Member Liikanen “facing worst economic crisis of our time”
- Allied Irish finds another Euro 840mio of losses
- Economic Data Release Table
Foreign Exchange Markets:
- EUR, GBP and AUD all lower against the USD today and not surprising given the performance of the US equity market overnight and hence the Asian Equity markets today all looking lower. Profit taking on JPY crosses can also shoulder some of the blame for the moves lower today.
- Risk aversion play is alive and well late in Asia with new lows being set for the day.
- Despite popping above 120.00 overnight the EURJPY has now drfited back into its 114.50/120.00 range and will probably head lower tonight. Avoid the middle of this range and look to play from the edges otherwise you will get hurt!
- USD/JPY needs to take out 94.80 otherwise it risks a move back to 92.50.
- Asian Session Ranges: EURUSD 1.2574/1.2694, USDJPY 93.93/94.23, GBPUSD 1.4207/1.4300, AUDUSD 0.6375/0.6391, EURCHF 1.4847/1.4880, EURGBP 0.8843/0.8883, EURJPY 118.34/119.42, AUDJPY 60.01/59.94.
- Support and Resistance Table.
Equity Markets:
- Yesterday we had the Hang Seng, Nikkei and Aussie equity markets all close in positive territory for the first time this week, today it looks like all three will finish the week lower for the third time this week as US equity markets weigh on Asia.
- The Australian S&P/ASX 200 index has ended the day down 46.50 pts or -1.35% at 3,402.4. Bear in mind the low so far has been 3,217. The financial and materials sectors weighed the market down today although all sectors were well into negative territory. For my thoughts on Westpac please click here.
- The Hang Seng is currently down 321 pts or -2.47% at 12,701.87.
- The Nikkei is currently down 170 pts or -2.25% at 7,387.63. The only shining light so far today is the energy sector, not surprising given the move in oil overnight. Industrial and technology sectors weighing heaviest on the market today.