- UK retailers suffer 2.9% sales decline.
- Lloyds July employment confidence monitor -51 (-53 prior)
- Australia MI July inflation gauge rose 0.2%m/m , rose 1.5% y/y.
- Australia ANZ August job advertisements fell 0.8%.
- NZ Treasury monthly indicators , underlying annual inflation rate is 1.25% to 1.75%. Sees consumer prices rising 0.5%, inflation target in bottom half of 1%-3% target band 2012 with inflation increasing in 2013 citing commodity prices stabilizing and currency gains fading.
- Troika held productive talks with Greece , will again in September.-MNI
- Praet: Euro is irreversible , must convince markets -MNI
- Coeure: Euro is irreversible , ECB will not allow higher yields due to Euro break-up fears , no need for concerted global central bank intervention. -MNI
- Visco : ECB is honing intervention tools.-MNI
The market started the day with a weaker tone to the US dollar and Yen .
Euro started the session around the 1.2385/95 level till right before Tokyo opened. Stops above the 1.2405 resistance level were touched sending the euro to its highs of 1.2444 , but that resistance area stalled the short-lived rally . Helping the euro rally was continuing covering of euro/yen , and eur/aud positions. Euro now trading back below 1.2400 , so would look for further consolidation around these levels .
Yen again a non-event dealing mostly on crosses , trading to a high of 78.63 early, then slowing drifting lower to current levels of 78.43.
Aussie$ traded in a narrow 20 pip range touching a high of 1.0577 then selling off on scattered eur/aud stops at the 1.1740 level reaching a high of 1.1770. Good support at 1.0550 level with buyers down below at 1.0500. RBA rate decision tomorrow , expectations call for them to leave the cash rate at 3.5%.
Goo luck today.
