- The FinMins and central banks chiefs of Japan, China and South Korea met in Manila where Asian Development Bank conference is taking place
- Japan’s FinMin expressed concern at the Yen’s rise
- Asia looks to double the size of its reserve pool
- China official services PMI slows in April
- PBOC fixes USD/CNY mid-point at 6.2697
- Chinese Premier meets with US Treasury Secretary in Beijing; Geithner says China strong enough to implement reforms which US calls for; Premier Hu says China and US must trust one another
- New Zealand’s unemployment rate increases to 6.7%
- ECB meeting is main event risk in early Europe
- Golden week continues with Japan closed today and tomorrow
- Regional shares -0.25% on average; Gold $1652/oz; Oil $105/bbl
The NZD was the main mover today and it galvanised the AUD into action, although the other majors have been very quiet again as Golden week draws to a close.
NZD/USD spent the early part of the session trading near .8090 before the disappointing headline unemployment number sent it tumbling to .8040. It rebounded very quickly in what looked like a case of sell-rumour-buy-fact trading. It was unable to break back above .8080 though, and the slightly negative draft statement from China/Japan/Korea meetings as well as lower official China services PMI affected risk sentiment and sent the Kiwi back to .8050. AUD/NZD was also very active, rallying to 1.2825, tumbling to 1.2740, and finishing unchanged near 1.2760.
AUD/USD was led by the NZD and the AUD/NZD flows, but it took on its own momentum when stops below 1.0300 were targeted and triggered. Solid corporate demand soaked up much of the selling. Ranges: 1.0285/1.0327
EUR/USD has taken its lead from the Antipodean currencies as well as general risk sentiment, with many unwilling to trade ahead of the ECB. Ranges: 1.3136/56
USD/JPY has done nothing in Tokyo’s absence, trading a 10 pip range between 80.10/20.
Cable 1.6177/99; EUR/CHF 1.2010/15
