- N.Z. July food price index rose 0.2% from a month ago.
- N.Z. FM English comments he would prefer N.Z. dollar to be lower , current levels are a challenge to exporters.
- Japan 2nd qtr GDP expanded 0.3% q/q , annualized basis GDP rose 1.4 % , less than the increase of 2.5% expected by the market. (Japan Data-MNI)
- Japan EcoMin Furukawa says moderate growth expected to continue in 3rd qtr., needs to watch risks of worsening of overseas economy due to European debt crisis, wants to do everything needed to end deflation.
- B of A cuts China GDP forecast, 2012 cut to 7.7% from 8% , 3rd qtr. cut to 7.4% from 8% , sees no recovery for exports in sight, ability to ease constrained by home prices.
- China’s RRR cut postponed as reverse-repo satisfy needs.
- PBOC sets Yuan rate at 6.3456.
Not really sure of about the USD/JPY high of 79.00 at 18:40 GMT (think it was total crap) but could have some sort of mis-hit . Back to the rest of an exciting session watching water trickling out of a bathroom faucet.
EUR/USD started near Fridays N.Y. close at 1.2290 consolidated in the 80’s , found decent buyer interest below 1.2270 . More buying interest around the 1.2235/40 level . On the topside , the small bounce from 1.2265 got us to the sellers at 1.2295/00 . Additional resistance in place at Fridays highs 1.2315/20. Rumors of a secret Monti & Merkel meeting next week should keep EUR/USD longs forever hopeful .
USD/JPY did absolutely Nothingggg while I was watching . Even with very disappointing GDP numbers it could still be quoted 78.25/30 for the remaining 4 ours afterwards . With there slowing exports weighing on economic growth you would expect some talk of additional easing in the coming months.
AUD/USD opened around 1.0555/60 slightly weaker from Fridays N.Y. close . Maintained a narrow range through out the session , finding support below 1.0550, and sellers above 1.0565/70.
Good Luck Today .
