Overnight Developments

  • Australian May Home Loans flat from -0.20% prior
  • BES: Potential losses do not endanger capital ratio compliance
  • NZ June Food Price rise 1.4%
  • Fed’s Fischer: US does not face serious asset price problems / US is making significant progress in strengthening financial system / Praises stress tests and tighter capital rules / Defends Volcker rule, skeptical of breaking up big banks
  • Asian bourses were mixed
  • A very dull affair in Asia, currency markets barely moved away from their opening levels.
  • The Nikkei is currently down -0,53% at 15,135, the Hang Seng is down -0,09% at 23,219, the Asx is up +0,50% at 5,491 and the Shanghai Composite is up +0,35% at 2,045.
  • Gold is flat at 1338,7, Silver is flat at 21,513, Crude is down -0,13% at 102,80
  • The US 10YR is down -0,28% at 2,527.

 FX Update

TGI-Friday!

AUDUSD opened at 9393 and came under early pressure from Tokyo accounts. We found support below 9380 from local corporates and the balance of the session was spent trading 5 pips either side of 9390. Offers present at 9400 with stops just above and more offfers at 9450. Sell stops commence at 9355 with bids at 9335 and large stops at 9330.

NZDUSD opened up at 8823 and has seen a drift lower to 8804. Japanese accounts have been selling NZDJPY. Support is seen at 8790, 38.2% fib on the 8714 / 8836 rise, 50% is at 8775, it is also a support line. Resistance 8843 August 2011 high and likely protection ahead of 8850 barrier. Stops seen at 8780 ahead of large bids at 8760 and stops at 8750. Small offers at 8835 with stops at 8845 and larger offers at 8850.

USDJPY was bid initially on Tokyo fixing demand, pushing the pair from 101.26 to 101.40. Once that had finished, Asian markets put the ‘closed for the day’ sign up, despite the Nikkei paring back some losses. Japanese banks have been the main buyer in the last hour, pushing the pair from 101.26 to 101.38, it is said to be related to the Tokyo fix. Japanese exporter interest is cited between 101.50/60, importer demand lies between 101.10/20 and semi-official demand said to be between 101.00/05.

EURUSD fell from 1.3610 to 1.3595 on cross related flow, mainly EURJPY but once that subsided, the single currency remained glued to 1.3603 for the reminder of the session. Macro bids seen at 1.3585 with stops just below and more stops at 1.3570. Offers at 1.3640 with stops at 1.3650.

USDCAD drifted lower after opening at 1.0647 and we are currently holding lows at 1.0637. Cad strength seen ahead of employment data. Huge option level at 1.0625 expiring during today’s US session, taking affect. Sell stops seen at 1.0635 with bids below the option at 1.0600. Buy stops seen at 1.0695 with offers at 1.0710 and larger stops at 1.0720.

Data on Tap today (all times GMT)

Good Luck today.