- Merkel says eurozone crisis will last at least another five years.
- ECB investigating Spanish bank loans that may have failed to follow the rules.
- Australia retail sales rose 0.5% m/m.
- Australia Trade deficit fell to A$ 1.456B.
- Australia ANZ job advertisements fell 4.6% m/m.
- China HSBC services PMI at 53.5 in October from 54.3.
- G-20 summit meeting in Mexico highlights U.S. ‘fiscal cliff’ and European crisis.
The market was fairly quiet today ahead of a busy week of rate decisions by the RBA, ECB and the BOE. Our U.S. Presidential election Tuesday being to close to call. A leadership change in China, continued concerns over Greece and Spain, and a G20 summit vacation, all hanging over the market to do nothing but consolidate for now.
EUR/USD triggered stops at 1.2820 very early in the session sending it to a low of 1.2808. Good option related buying between 1.2800/10 helped to support it the remainder of the day reaching a high of 1.2839. Some resistance above at 1.2865/70 with stops now below the support at 1.2800.
USD/JPY found some bids below at 80.20/30 but could only rally to a high of 80.56. Stops now being reported above at 80.70/85 up through to 81.00 with resistance around 81.30/40.
AUD/USD held firm most of the session after starting out on the lows at 1.0327. Decent retail sales and trade numbers kept the rally intact with the AUD/USD reaching session highs of 1.0366.
