- Trichet cancels October 13th meeting on next Greek aid tranche
- Troika will need until mid-November to finalise report
- Belgian FinMin says Greece has enough money to keep going until mid-November
- EZ FinMins mulling options to increase EFSF firepower
- Fed’s Lacker: US economy showing moderate growth
- Australian economy: Trade balance +AUD3.1 bln, building approvals +11.4%; both much stronger than expected
- RBA leaves rates unchanged but language is cautious
- Korean shares open almost 5% lower, trade briefly suspended
- Copper falls by over 4%; Gold slightly higher at $1663/oz
The latest EZ FinMin meeting ended and we got no further clarity. We are still awaiting confirmation that the first tranche of EUR8.5 billion aid to Greece has been signed off but Juncker said that it will be another 6 weeks before the Troika report is ready. The Belgian FinMin said that Greece has enough money to keep going until mid-November so presumably they will continue to avoid default for now.
EUR/USD has had a quiet session with no-one too sure what to do. The pair closed in NY at 1.3180, briefly popped above 1.3200 on some initial comments after the EZ meeting but has become quiet since then. Ranges: 1.3173/1.3217
AUD/USD traded quietly for much of the morning above .9500 but fell immediately after some strong economic data in what was probably a case of buy-rumour-sell-fact. The pair rallied back to .9520 and then traded quietly until the RBA decision. It fell immediately to .9500 on the slightly more cautious RBA language and then picked up some bearish steam, falling to .9454 before steadying. Market will now increase the chances of a November rate cut. .9454/.9547
USD/JPY 76.53/73; Cable 1.5420/60; USD/CHF .9195/.9218
