Market Talk: FXWW

From the FXWW Chatroom: New Zealand Q3 labour report came out very strong, jobless rate improved to 4.6%, participation rate at 71.1%, private wages up and AHE at +1.2%. NzdUsd was at 0.6850 and just 2 seconds into data release, someone had spoofed the market sending the pair to 0.6825. Queries surfaced and the low is legit – unfortunate for that someone had placed stops down there. The pair then bounced back to 0.6888 on the stellar numbers. Offers seen in the 0.6890’s are slowly being chewed away – yes, slowly and surely and printed 0.6915. Long positions in AudNzd were reduced, the cross tanked below 1.11-handle. Stronger Usd had the Kiwi returning to 0.6870’s after high 0.6915.

UsdJpy rose to 113.90’s following Tokyo fix demand and a report in Kyodo News that PM Shinzo Abe is to order extra budget at cabinet meeting today. Spoke to some Asian macro names and some of them see 114-handle as the topside of the range. They are likely to go short. Heard there are offers atop linked to option strike at 114.00 maturing in coming days, total nearly $4bn. First level of support comes in at 113.50, while the next is 113.05, the Ichimoku Cloud baseline which held well yesterday at 112.97. At 2.00 pm Tokyo, BOJ Nakaso will be speaking at FinTech forum.

Not much to pen on the Aussie – Kiwi rally had speculators rushing to liquidate long AudNzd. As a result, AudUsd was contained. Hearsay offers near 0.7700, the 200-Day SMA comes in at 0.7696. There is also an option expiry at 0.7600 tomorrow New York cut for Aud1.5bn.

Both EurUsd GbpUsd were slightly lower from morning, nothing much to shout about. There is a chatter that offers lined up in EurUsd in the 1.1650-60 linked to option strike tomorrow at 1.1650 for Eur1.46bn. We should see some buy orders starting from 1.1610-1.1580. There are several option strikes maturing tomorrow with notional up to Eur2.8bn. On GbpUsd, seems that market positioning is pretty flat. There is a 1.3260 option strike rolling off today for Gbp600mio. On charts, 1.3350 will be challenging – will be get

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