- EFSF will set aside aid funds to buy Spanish bonds/ Draft MOU – Dow Jones reporting
- EFSF will have two facilities for bond buys
- EFSF able to buy Spain bonds on primary, secondary markets
- Also able to buy Spain subordinated notes
- Spanish auction disappointing. High rates paid, weaker cover than previous auctions. 10 year govt bond yield ticks over psychological 7%
- UK June retail sales inc fuel +0.1% m/m, ex-fuel +0.3%, weaker than median forecasts +0.6%, +0.4% respectively. Rain hits food sales
- Dutch July consumer confidence -32 pts, up from -40 in June
- Dutch June adj unemployment up at 6.3% from 6.2% in May
- Bundesbank expected to buy australian dollars in 3Q /Sources – WSJ
- China to buy US assets via GM pension
- There is no ‘euro crisis’ - WSJ
- Germany’s twin euro-martyrs tell Merkel to put up or break up – AEP at The Telegraph
The teflon-coated aussie dollar has had another good morning, as global investors go in search of safe currencies offering some sort of yield. The WSJ story of Bundesbank buying interest coming down the pike (see above) and talk of AUD/JPY toshin-related buying also helping support the antipodean wunderkid.
AUD/USD up at 1.0430 from early 1.0390 having been as high as 1.0439 so far. EUR/AUD down at 1.1786 from early 1.1827.
Next hurdle of aussie dollar bulls is the well-documented barrier option at 1.0450.
EUR/USD little changed at 1.2295 from early 1.2288. Inbetween though we’ve been as high as 1.2325 and as low as 1.2263. The low came just after the release of disappointing Spanish bond auction results. China and the Dutch bank thought to be selling on behalf of SNB notable sellers above 1.2300.
Sell stops seen through 1.2250, buy stops up through 1.2330.
USD/JPY effectively unchanged at 78.60…….bless.