- RBA cuts interest rates by 25bps to 4.5%
- China official PMI comes in lower than expected at 50.4
- HSBC china manufacturing PMI 51.0, up from 49.9 last month
- MF Global reportedly under investigation for missing funds
- Mixed performance on regional bourses, not much change overall
- Gold $1724/oz
- No sign of any BOJ activity
Fairly quiet session for the most part, only springing briefly to life after the RBA cut rates by 25bps.
AUD/USD spent much of the session trading around 1.0540. It fell on two separate occasions, after the China PMI and after reports of money missing at MF Global, but on both occasions the support lines near 1.0500 held. This support was broken immediately after the RBA decision. Ranges: 1.0471/1.0566
EUR/USD briefly breached technical support at 1.3830 but has been unable to consolidate below, that said rallies have also been shallow with EUR/JPY flows mainly to blame for any EUR selling. Ranges: EUR/USD 1.3812/71; EUR/JPY 108.09/109.19
USD/JPY didn’t see anything like the volatility from yesterday. Reports suggest that the BOJ has filled all its trading lines with major banks and is now busy trying to roll-over positions and replenish these trading limits. Ranges: 78.07/61
Cable 1.6055/93; USD/CHF .8760/96
