- New Zealand trade deficit better than expected
- Japanese investors seen switching from Bunds to Gilts
- Nikkei falls after 1.4% after holiday yesterday; other regional bourses flat
- Gold $1690/oz
- Australian government increases it’s majority after Speaker change
- Japanese government leaves overall economic assessment unchanged
- BOE Miles: Return to growth will be gradual
Another very quiet session in Asia ahead of tonight’s US Thanksgiving holiday. We have seen some modest profit taking in pairs like EUR/USD and AUD/USD ahead of the long weekend but there have been no major news developments.
EUR/USD opened near 1.3340 and has inched its way higher to a session peak at 1.3384. More optionality is seen at 1.3300 and this along with well reported buying interest near 1.3310 has encouraged modest profit taking, with short-dated EUR/USD calls proving popular. The poor Bund auction overnight continues to weigh on sentiment but the market is short and always susceptible to short-covering rallies.
AUD/USD bounced alongside the EUR/USD, after opening at .9680 it has seen a high of .9748 thus far. The improvement in the Australian government’s majority might well have encouraged modest short-covering.
USD/JPY retraced all of its NY gains and will close the session in very familiar territory near 77.00; range 76.99/77.32
Cable traded 1.5516/58 and USD/CHF .9176/.9200
