- NZ government operating deficit was NZ$5.91 bln (1.1 bln narrower than forecast).
- NZ finance minister English states: NZ economy has shown “moderate strength”.
- NZ tax revenue expected to fluctuate.
- NZ tax fluctuations reinforce need to control cost.
- English notes responsible fiscal management in uncertain times.
- Italian cabinet approves more than 4.5 bln euro of spending cuts.Rising to 10.5 bln in 2013. Cuts avoid 2% sales tax increase until next year. Unions set to strike.
- Australia June Construction Index rises 0.1 pt. to 34.8.
- PBOC sets Yuan reference rate at 6.3249 vs previous 6.3193.
- Japan FM Azumi states Japan government will run out of money to fund budget in October unless deficit financing is passed in parliament. If the bills are not passed drastic spending cuts would have to be made.
- PBOC has more room to ease as inflation slows.
- China may miss 2012 trade growth target.
- Japan Noda tells IMF Largarde Europe’s debt problem causing severe damage to Japan economic sentiment.
TGIF: Extremely quiet market closing out this session as everyone now awaits U.S. Employment numbers . Eur uneventful,showing some weakness from the 1.2390 level down to 1.2375,settling here at 1.2380. Stops reported above the 1.2405/10 level . Usd/Jpy stuck in the middle most of the night at 79.90 (80.01 high/79.83 low). Aud was the big mover with the commodity currencies all weaker as Asian stocks sold off. Aud started the session at 1.0290 and drifted to lows around 1.0240/45 ending here at 1.0253. Good Luck.