• Australia home loan approvals fall 1.2%. Value of home loans to investors fall 4.6%. Australia owner-occupied lome loan values rise 0.2% in May.
  • Australia Consumer confidence for July up 3.7% to 99.1 (5 month high)
  • RBA deputy governor Lowe says Australian banks have fared better than many global peers, have higher lending standards. Regulators need to actively enforce rules, be prepared to limit financial innovation. Banks need simpler risk-management strategies. He can’t rule out zero cash rate completely due to EU crisis , probability is “very low”. Says banks need to do more to rebuild trust , sites Barclays as an example. Says U.S. housing policies created large imbalances.
  • Japan’s June Corporate Goods Price Index :prices m/m -0.6% vs May -0.5%, y/y -1.3% vs -0.7%.
  • BoJ will probably hold off on any stimulus at the end of their meeting tomorrow.
  • China bars foreign-invested developer yuan loans abroad.
  • PBOC set Yuan at 6.3209.
  • China Central Bank actions to weaken bank return on assets-S&P.
  • China’s banking profitability will be hit in 2013-S&P.
  • Finland’s PM says euro-zone situation is “very dangerous”-rtrs. Finland working for Euro and Euro-zone membership -rtrs.
  • German CPI numbers out this morning (-0.1%m/m, 1.7%y/y forecast).
  • Canada and U.S trade balances and results from FOMC meeting due out later.

EUR; After spending most of the session consolidating around 1.2250 we saw a brief flurry ALLL the way up to 1.2265 on scattered short-covering . Guess where we are now 1.2255… Enough said .

JPY: Started out the session around 79.40 , consolidated around 79.35 and saw lows of 79.25 right before the fixings (stops below 79.20 and 79.00). Ends up here at 79.35. Enough said.

AUD: Started out the session 1.0190 consolidates there and rallies with the EUR on short-covering to a high of 1.0213. Ending here at 1.0195. All that’s left to be said is have a good day and good luck !!