- Fed’s Bullard: QE3 possible, depends on future economic data
- New Japanese PM Noda had teleconference with US Treasury secretary Geithner; didn’t discuss FX or fiscal policy
- Italy seen reversing course on some austerity measures
- Japan’s industrial output +0.6% MoM
- Japan’s manufacturing PMI slips from 52.1 to 51.9, affected by strong Yen
- UK consumer confidence slips slightly to -31 from -30 in July
- NZ business outlook 34.4% from 47.6% in previous survey
- Regional bourses mixed, +/- 0.25%
- Gold +$6 to $1834/oz
Another very quiet session with the USD under very modest pressure against the JPY, as end-of-month corporate flows pushed USD/JPY from 77.80 towards suspected Sovereign bids at 76.50. The market hasn’t had the appetite or momentum to test this level and get at reported stops below 76.40. Ranges: 76.51/80
AUD/USD edged lower in early Tokyo on AUD/JPY sales but will finish the session near its highs as sentiment towards the Aussie recovers quickly. Ranges: 1.0649/96
EUR/USD closed in NY at 1.4440 and will close in Asia near the same level. EUR/JPY selling weighed in early Tokyo but the prospect of substantial Sovereign bids directly below 1.4400 helped encourage dip buyers. Ranges: 1.4414/46
USD/CHF .8175/.8208; Cable 1.6295/1.6315; EUR/GBP .8838/60; EUR/CHF 1.1800/50
