- USD/JPY and JPY crosses fall heavily
- Repeated verbal intervention by Japanese finance officials has no effect
- Gold makes new peak but AUD and EUR cannot follow today, both falling
- The CHF follows the JPY higher, with EUR/CHF falling heavily
- Australia Q3 CapEx -3.9%
- RBA seen near .9320/25 session highs
Today had very much the same feel as some markets had 12 months ago when risk aversion was at its height. JPY and CHF crosses fell heavily and Gold continued to make new highs.
USD/JPY stabilised in early trade above the previous 87.10 low but similarly to yesterday when the market broke below 88.00, the fall was sharp breaking from 87.20 to 86.60 in a matter of minutes. Price action suggests that the sellers are much bigger and much more desperate than the buyers. Range: 86.30/87.48.
JPY crosses also fell heavily with AUD/JPY the big mover. This pair broke below a long term bullish trend line. Range: 79.55/81.35.
The AUD/USD was capped in the morning by a very solid offer at 93.25 and reports that the RBA were also selling close to the highs encouraged some serious profit taking by AUD longs. Range: .9220/.9322.
The EUR/USD has suffered under heavy selling of EUR/JPY and EUR/CHF. The EUR/USD range has been 1.5100/41 and the crosses, 132.30/130.40 and 1.5005/90 respectively.
Cable has had a fairly quiet range, following the EUR in a 1.6669/1.6725 range.
Markets: Nikkei -0.35%, Kospi -0.3%, HK -1%. Oil -0.6 @ $77.35/bbl. Gold +0.5% at $1195/oz.