- Shanghai composite falls over 2%, other regional bourses by between 0.5% and 1%
- Australian Q1 PPI +1% QoQ
- US financial reform bill fails to pass senate
- Nothing fresh on the Greek situation although the usual concerns continue to be rehashed
- ECB’s Mersch blames poor communication for exacerbating situation
Yesterday AUD/JPY led the way higher during a risk-on session and today it was AUD/JPY leading the way lower as concerns regarding the bubble-nature of the Chinese property market saw the Shanghai composite fall by over 2%. This naturally affected the AUD/JPY as those who entered the market yesterday at the wrong levels were forced out again. AUD/JPY range: 86.62/87.20, AUD/USD .9244/84
USD/JPY fell from 94.00 to 93.75 during this cross selling phase and has since consolidated quietly around 93.85. Exporter offers eyed at 94.50/80. Range 93.75/94.02.
EUR/USD closed in NY at 1.3390 and quickly broke above 1.3400 to trigger stops above 1.3405 in the thin illiquid market before Tokyo opened. The market remains nervous about sitting long EUR and some old concerns regarding Greece were enough to drive the pair back below the figure and EUR/JPY selling then dominated. Range: 1.3365/1.3413.
Cable endured a similar journey to the EUR/USD, up first then lower on GBP/JPY selling. Range: 1.5424/82
Markets: Nikkei -0.4%, HK -1.2%, Shanghai -2.2%, Kospi -0.3%. Gold steady at $1155/0z.