- Australian retail sales better than expected at +0.5% MoM
- Capital expenditure also better than expected at +4.9% QoQ
- Latest Chinese PMI 50.9, up from 50.7 last month
- BCC cuts UK growth forecast
- Regional stockmarkets +1.5% on average
- Gold trades quietly just below $1830/oz
The prospects of an RBA rate cut next week have rescinded after strong capital expenditure data and better than expected retail sales data. AUD/USD rallied from 1.0670 to 1.0720 after the numbers and AUD/JPY had an even bigger rise, up by more than 1% on the session before settling. Stronger equity markets also helped the risk-on sentiment and fuelled AUD/JPY short covering. Ranges: 1.0670/1.0723
USD/JPY was quite strongly bid through the morning session. Corporate sellers had exhausted their supply yesterday before month’s end and once the pair broke above 77.00, some light stops were triggered. AUD/JPY buying also had an influence. Momentum has waned into the afternoon and we will close mid-range. Ranges: 76.64/77.24
EUR/USD has been sidelined although some sizeable two-way business was noted around 1.4360 earlier today. The range of 1.4352/81 again tells it’s own story.
Cable 1.6221/57; USD/CHF .8046/76; EUR/CHF 1.1561/1.1608
