• S.Korean unemployment rate unchanged at 3.1% slightly better than forecast.
  • Australia Westpac consumer sentiment rises 1%m/m, index at 99.2.
  • New Zealand FinMin English says government handling finances, debt responsibly, controlling spending to get to surplus. Continues to recover from 2008 recession.
  • Capriles says there was no fraud in Venezuelan elections. Chavez agreed.
  • IMF warns eurozone banks on capital flights.-FT
  • IMF Vinals says euro crisis main risk to financial stability. Stresses we should not let improved market conditions lead us to a false since of security. Says it’s up to Spain to ask for European aid.
  • IMF Lipton says conditionality important in European aid, OMT structure is exactly right.
  • Top China delegate pulls out of IMF meeting. “Island” tensions being cited.
  • ECB’s Noyer says Europe needs unified banking system, says aid program stops if country goes off track, bank resolution much less costly than recapitalization.
  • Fed’s Yellen says if QE boosts U.S. growth then the world will benefit. Policy will normalize when economy recovers. Unwind asets in timely way to avoid inflation.-mni
  • Merkel returns to Germany in one piece.
  • U.S., Japan face risks as havens, IMF warns.- WSJ

A choppy session with the euro taking center stage touching off stops below 1.2870 at first, then finding short lived support at 1.2850 before stops (rumored ACB) were again triggered sending it to a low of 1.2835. The sell off in EUR/USD was helped by continued liquidation of EUR/AUD as stops in that cross were triggered above 1.2600, reaching a high of 1.2623. Support now comes in at 1.2820/25 and key support at 1.2800. Resistance can be found above at 1.2885/90 up through 1.2900.

The range in USD/JPY of 78.19/29 needs no further comment.

AUD/USD held its own as the EUR/USD was getting smacked, finding support again at 1.0175/80 level. As mentioned above, EUR/AUD played a key role helping AUD/USD make session highs of 1.0225. Sellers still patiently wait above at 1.0250/70.

With important meetings still going on (see below) I’m sure they will keep us completely focused and ready to act on their every word. Have a good day and enjoy.

  • EU Parliament panel on banking union proposals.
  • ECB’s Weidmann, Praet speak at Bundesbank symposium.
  • IMF meetings continue ( more global growth worries and Euro debt crisis comment to come)
  • BOJ Shirakawa speaking.