- The RBA released its financial stability review
- The headlines were generally favourable in outlook for Australian banks and the overall economy although risks are still seen
- Australian Treasurer Swan sees continued growth in mining investment
- Chinese press talk up chances of further RRR cuts
- BOJ Nishimura: Huge bond buying should not be misinterpreted as debt monetisation
- BOJ Miyao: Bold policy helped cut long-term yields; monetary easing will continue to try and beat deflation
- Japanese ruling party ends tax hike debate
- Bernanke: Must not change policy too soon
- Shares in Tokyo and Shanghai fell by 1.1% and 1.5% respectively; Seoul and Singapore -0.4% with HK also 1% lower.
- Gold $1680/oz; Oil $107/bbl
The AUD remains under pressure across the board and even a moderately optimistic RBA review didn’t help matters. AUD/USD opened near 1.0460 and has slid quietly lower, breaking marginally below hourly support at 1.0425. Recent highs in EUR/AUD and GBP/AUD are still intact and they are providing some small support to the AUD at present. Ranges: 1.0419/60
USD/JPY opened near 83.15 and the bulls were hopeful that the corporate end-of-financial-year selling was probably out of the way, opening up the prospect of a renewed bull run. This did not materialise and in fact some trailing stops below 83.05 were triggered in early trade. The pair drifted lower in late trade alongside falling equity markets. Overall interest levels were low. Ranges: 82.81/83.20; EUR/JPY 110.50/88
EUR/USD moved around in a tight range, dominated by flows in EUR/JPY and EUR/AUD. Dealers say that there are few large orders close to the market so further tight range trading is to be expected. Ranges: 1.3311/37
Cable 1.5943/60; EUR/CHF 1.2048/58
