- RBNZ leaves rates unchanged at 2.5%
- Reuters poll has the RBNZ staying on hold until Q1 2013
- Geithner: Europe will do whatever is necessary
- China could cut rates by 100bps in H2: Press reports
- Regional stockmarkets recover mildly to be -0.5% on average, having earlier been somewhat lower
- Gold $1620 as analysts turn bullish after US data and EZ progress
Really not much to report with the major FX pairs trading fairly quietly in 20 pip ranges for the most part. There was some mild risk aversion in early trade, especially on the Tokyo open when the Nikkei fell 0.8% and USD/JPY also fell, but this has been reversed on the signs of progress in Europe and the China rate-cut reports.
USD/JPY fell from 79.45 to 79.30 on the Tokyo open but has now reversed that small move and remains stick in the middle of some reportedly large orders at 79.00 and 79.80 for the 5th day in a row. Ranges: 79.28/46, EUR/JPY 99.61/91
EUR/USD closed in NY near 1.2570, fell in early Tokyo on EUR/JPY selling but has now come back to its starting level. Dealers report that most traders are unwilling to take on fresh risk ahead of the weekend. Ranges: 1.2550/78
AUD/USD has managed a 40 pip range, almost, and has followed a similar path to the EUR for similar reasons. Reports that China might cut rates by 100bps in H2 did encourage a brief bout of intraday short-covering. Ranges: .9925/65.
Cable 1.5501/28; EUR/GBP .8091/.8106 with talk of large stops in the cross above .8155 and .8170.
