- China’s December trade balance $13.1 billion Vs $20 billion expected
- China’s copper imports fell 2% in December
- PBOC official says that China should diversify away from USD
- Germany, France pushing Portugal to accept EU/IMF aid- German press
- UK economy: CBI data shows financial sector volumes, sentiment up, jobs down
- Australian retail sales +0.3% MoM, as expected
- Australian flood impact likely to drag on for months
- Tokyo markets closed today
- Oil gains 1.5% on Alaskan pipeline issue
- Regional stockmarkets -0.3% on average
- Gold +0.3% at $1373/oz
EUR/USD fell below 1.2900 in early interbank trade after the German press suggested that both France and Germany were pushing Portugal to accept EU/IMF help. The German finance ministry denied these reports. EUR/USD fell to a low of 1.2860 in early interbank trade but with Tokyo on holidays, momentum was missing and the pair gradually recovered. The session highs at 1.2930 were achieved when Dow Jones reported that a PBOC official had recommended further diversification away from the USD. Ranges: EUR/USD 1.2860/1.2930, EUR/CHF 1.2444/89
USD/JPY saw its session highs as the EUR/USD was sold off but the Tokyo holiday has ensured a quiet session. Ranges: 82.95/83.25
Cable fell and rallied along with the EUR but lagged to some degree, allowing the cross a 20 pip range. The moderately upbeat CBI data did help. Ranges: Cable 1.5522/67, .8292/.8312
AUD/USD also moved lower early along with the EUR/USD but demand has been relatively robust and the AUD has not been affected by the poor Chinese data. Ranges: .9927/82