- Australia returned a trade deficit for the 2nd successive month, with a trade balance of AUD-500 million against an expectede surplus of AUD1 billion.
- UK shop inflation rises to 1.5%
- Emerging markets: World Bank forecasts 6.1% growth for Indonesia and inflation up to 8.5%
- Stockmarkets fall by around 1% on average after Fed minutes overnight
- Gold $1645/oz; Oil $103.70/bbl
The first order of the day was for the AUD/USD to try and break below the exotic option level at 1.0300 and it did this around the Tokyo open, with help of some heavy AUD/JPY selling. The poor trade data then gave the downmove some added momentum before interest totally fizzled out in afternoon trade. Ranges: 1.0259/1.0330
USD/JPY eased lower in early trade in line with the risk-off sentiment but we’ve been contained to a 30 pip range today, unusual for the recently-volatile Yen. Ranges: 82.61/93
EUR/USD targeted stops below 1.3200 and triggered them when the AUD/USD started to fall quickly under 1.0300, so once again EUR/USD was been led rather than leading. EUR/JPY selling was also conspicuous but Sovereign demand at and below 1.3200 soaked up most of the selling. Ranges: 1.3182/1.3237
Cable 1.5871/1.5913; EUR/CHF 1.2037/47
