Usd is a mixed bag versus the G10. As Asia walked in Usd picked up buyers – Euro, Aud, Nzd, Aud slipped.
In Euro, I was told a North European bank bought good amount of Euros above 1.2760 for real money but ran into ample supply. As the market drifted lower, confirmations from other banks that offers from macro names lined up from the 1.2770’s. Euro got to 1.2714 – Asian name was selling the pair on the bounce but was Euro gained back to 1.2730.
Australian dollar slipped to low of 0.8736, partly due to Usd strength and also RBA Debelle’s Q/A. Trust names were buyers of Aud on the move back – we also encountered AudJpy demand as the cross returned to 94-handle. Our trader sees 94.60 as opportunity to position new short. 94.62 is the 200-day MA while 94.74 is the 61.8% Fibonacci retracement. Aud touched 0.8814 but the important level to watch is 0.8804, closely above this 61.8% retracement could retest 0.8900.
The only interesting thing in UsdCad is the buyer sitting at 1.1197. The pair climbed up from 1.1190 to 1.1214 before the Swiss surfaced to buy dollars. His interest got the HFT participating as well. Buying at 97 and sell 98-99. As Aud registered high, the bid got filled, went 1.1197 offered and then, bid returned. The persistency has led to our trader suspecting this demand is linked to an M&A. Offers seen above 1.1225 from real money accounts; large one above 1.1255. Bids are light; mostly from 1.1175 onwards. Looks like market is long UsdCad, just been told stops from non-Canadians beneath 1.1160.
Japanese returned today with a smile on their face. They like UsdJpy during their session; they have been buying since they got in and sees topside 107.30-40. There are systematic stops are at 106.70 and more at 106.50.