- RBA’s Stevens: Mining boom to last decades; not terribly concerned about housing boom
- Edna Lenny elected Irish PM; Michael Noonan finance minister
- US wholesale inventories rise 1.1%
- European Banking Authority: 2011 stress tests much tougher than 2010
- EU to discuss Portugal Friday; no need for aid seen: Reuters
- Greek PM: Current conditions difficult
- RBNZ cuts rates 50 np to 2.50% from 3.00%; may raise rates once reconstruction underway
- S&P 500 falls 0.1%
- US 10-year note yield falls 7 bp to 3.475% despite Pimco news
- Oil falls $1.00 to 104.00; copper falls 3.2%, lowest in 3 months
The market was in a hurry going nowhere fast today. Traders rported good two way flows in early US trade but there was no follow-through in either direction. US/German yield spreads were steady and so was EUR/USD.
Asian central banks bought dips in the morning just above 1.3900 but were not around as we dipped to 1.3885 at mid-afternoon. Rallies were limited to 1.3935/40 area.
USD/JPY jumped at midday in light trading, to the 82.87 area but eased lower in the afternoon as US yields fell. 82.58 was the low.
GBP/USD was very quiet around 1.6200 with many sidelines ahead of tomorrow’s MPC meeting.
RBA governor Stevens made some very upbeat comments on the Aussie economy and on the outlook for commodities, saying the boom led by China and India would last decades. AUD could not rally on the talk, however. topping out in the 1.0130 area. Dips were limited to 1.0090 with heavy copper prices a drag on the AUD.
NZD slumped as low as 0.7330/35 after the RBNZ opted for an aggressive 50 bp cut to their overnight lending rate in response to the earthquake.
EUR/CHF slumped on sovereign debt concerns, dragging USD/CHF lower and disappointing bulls looking for an inflection point. We close at 1.2928 and 0.9295.