Australian numbers published today were strong. Deficit for March improved and retail sales up. AudUsd and AudNzd popped little. AudUsd found corporate bids below 0.7450 and we heard more into this 0.7420’s. As usual, Early Asia likes selling AudNzd which had us printing 1.0832. Market reversed to 1.0860’s on better Aussie data.
Small offers are reported at 0.7500-20.
One Canadian real money sold UsdJpy post-NY closed. Initially, there was slight risk off but UsdJpy firmed into open. Chatter of bids into 106.60’s but topside obstacle at 107.50-60. Japan will reopen tomorrow. The answer that some are looking for is how Japanese investors will react to the Turkish Lira move. Meantime, there is a $2.3bn option expiry at 107.00 New York cut.
China Caixin PMIs were slightly softer in April. Services slipped to 51.8 from 52.2 while composite PMI down to 50.8 from 51.3.
EurUsd I locked between offers 1.1500-15 and bids 1.1450-70. Some tech guys are looking to buy near 1.1460’s but break below 1.1440 spells trouble. The Greek story that no one is watching, the next slice of cash to be given to the debt-ridden country. But the IMF and European Commission disagree over Greece’s progress. In June, Greece faces a €2.3bn repayment to the ECB. It also has a large amount of shorter term debt to repay in the form of treasury bill. Another debt-standoff could even result in new elections.
There is something rather strange in commodities space. Spot Gold and Silver had dip after open but is back at the day’s high. Futures contracts of iron ore and copper are down. Oil futures are up and that could be due to fire in Fort McMurray, which could affect the oil sands projects. Rest of them, I don’t know.
Usd started firm but ends the morning paring gains. USDCNY fixed at 6.5128 caused no panic. Only thing was offshore spot USDCNH hit high of 6.5215 on fix and has fallen back to 6.5125.