- The Democratic National Convention is on the way .
- Gillard says mining outlook is strong , must be her glasses .
- New Zealand value of all buildings rose 0.8% , post earthquake construction being cited.
- UK August BRC shop price index rose 1.1% y/y -MNI
- Australia August AiG performance of services index falls 4.1 points to 42.4.
- Separatist PQ win election ends nine years of Liberal rule . Congratulations tp PQ’s Pauline “Lady of Concrete ” Marois.
- Australia 2nd qtr GDP expands 0.6% q/q and 3.7% y/y somewhat weaker but still in line with expectations .
- Australia Treasurer Swan saying growth is faster than every major advanced economy , high A$ weighed on investment decisions, sustained fall in commodity prices would hit budget , but committed to to surplus in 2013.
- Chinese HSBC services PMI drops to one year low of 52.0 .
- BOJ Board’s Miyao highlights most of the same comments about Japan’s economy expected to resume moderate growth , Yen rise hurts business sentiment , along with global slowdown fears.
A few moments of activity interrupted an otherwise lackluster session . EUR/USD fell through support at 1.2550 as large stops were rumored to be touched sending EUR/USD to a low of 1.2520/25 . Next support level 1.2500/10. Sellers back above 1.2590/1.2600 level.
The major battle of the evening was AUD/USD trying to maintain its 1.0200 handle despite weak numbers . We saw the low of 1.0190/95 after the GDP release but quickly bounced back over 1.0200 and is now consolidating around the 1.0210 level . The narrow range for the session of 1.0230/1.0190 is not likely to continue as market now looking for levels to sell . Next line of support down at 1.0170/75, with resistance up at 1.0250/60.
USD/JPY WHYYYY bother 78.41/78.53 says it all , a lot less than BOJ’s Miyao .
USD/CAD a non-election event at 0.9857/0.9874 range.
Have A Good Day.
