FX Flows

From the FXWW Chatroom: Gotobi-Day has kept UsdJpy firm – little bit to do with Taro Aso’s comments too. Initial good supply of AudJpy from speculators kept UsdJpy under control. As soon as the fixing demand was over, UsdJpy eased but came back to challenge the offers ahead of 108.80. I’m told that those who were long downside put options and went long cash into 106 are offering Usd up at 108.80. Apparently not small – there should be some Japanese offers too up to 109-handle. Usual comments from Japanese Finance Minister Taro Aso on intervention.

AudUsd has found good buying ahead of 0.7300 despite AudJpy sales conducted this morning. At the same time, someone or people bought AudNzd – the cross was at 1.0805 when I sat down and now trading at 1.0855. We think the AudNzd demand came after NZ Finance Minister Bill English said RBNZ has the instruments to address housing price boom.

Aud traded lower and UsdCad higher – simple, during Asian time. Oil futures stable but most other commodities getting hammered. Iron ore futures down more than 4.8% as I write. One macro guy noted the potential double top in copper futures.

Good two-way flows in UsdCad. Macro names were sellers while buying came from Asian names within this 1.2655-70. Our trader Jon is changing his view. Intraday, a break of 1.2940-45 opens up to 1.2900-10. Jon still prefers to buy dips but may delay due to stop sell orders building up below 1.2880.

Absolutely not interested in Euro. Greek vote is not scheduled for May 24. Story in FT that German Finance Minister, Wolfgang Schäuble has eased his objections to Greek debt relief, paving way for possible agreement. Let’s wait and see. Offers reported 1.1420 (who cares) and a lot more 1.1500 (really who cares?) Downside bids 1.1360.

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