- Moody’s Cuts Italian Bank Ratings as follow up to Italy downgrade last week.
- N.Z. CPI +0.3% q/q, +1.0%y/y , Slowest annual inflation since 1999 , giving room to hold cash rate at 2.5% till next year.
- Azumi: Says will act on excessive currency moves . Speculation over U.S. economy driving Yen gains. Recent Yen gains not reflecting Japan economic state.
- K.C. Fed’s George says Europe crisis will take time to work through. U.S. economy is growing slowly for sure and unlikely to grow beyond 2%. Unclear whether fed can put people back to work. Unemployment is weighing on consumer spending. Sees questions of integrity in U.S financial sector .
- RBA minutes : Saw more domestic growth momentum in holding rate at 3.5%. Cites growth momentum in July rate pause . Says inflation pressures overall remain contained . They saw slower global growth , low Australian inflation rate. Sees China’s growth slowing less than earlier expected.
- Australia new motor vehicle sales y/y 18.4% in June and m/m -0.6%.
- Senate probe faults HSBC as executives ignored warnings of money-launders and potential terrorist financiers. WSJ.
- China June FDI fell 6.9% form year earlier.
Looking like a risk on day as market awaits Bernanke testimony . The U.S. dollar weakened along with the Yen against all other currencies.
Eur: Rallied during the session on scattered stops above 1.2280 and 1.2300 along with short covering in Eur/Jpy . Eur currently consolidating around the 1.2300 level with some resistance around 1.2335.
Usd/Jpy sideways trading around the 79.85 level getting very minor support from Azumi comments but more as the market bought Eur,Gbp, Aud,Cad , Nzd vs. the Jpy.
Aud: after consolidating around 1.0260 most of the session before the RBA release Aud broke through resistance levels at 1.0280 and 1.0300 with scattered stops being touched off . we are now near session highs 1.0305 with next key resistance at 1.0335.
Good Luck Today .