FX Flows

From the FXWW Chatroom: Australia posted a strong Jan NAB business survey. Conditions at 16 from 10, confidence at 10 from 6. AudUsd advanced slightly from 0.7645 to 0.7657. Traders said there has been good volume in the Aussie bond futures sending Aussie yields higher. AudUsd climbed to 0.7670. AudUsd offers are mentioned near 0.7690, been there past sessions, could be defending this 0.7700 barrier and the breakout artists beyond 0.7705.

Aussie was also firmer versus the Kiwi. Chatter that sell orders are replenished in NzdUsd near 0.7210.

Not an interesting session for UsdJpy this morning. The early Japanese tried buying this but ran into offers near 113.80. Move back was also limited to 113.53. Our Tokyo colleague said Japanese real money were seen selling into this 114 yesterday and could still be there (though amount isn’t large). There are some weak stop buy orders into 114.20’s. Option strikes rolling off today, 113.50 for $1.2bn and 114.00 for $1.72bn. BOJ Governor Kuroda will be speaking today at 2.30 pm JST.

UsdCad has been trading sideways post-Trump/Trudeau meeting. Not a lot of action despite the AudUsd firmer; oil futures stable. Market is aware of this option strike at 1.3050 rolling off today NY cut, worth about $1.3bn.

The EurUsd began the session bid but turned after EurAud got sold off. Rumour that the flow originated from a hedge fund. EurUsd revisited 1.0590’s, trader saw good bids planted at 1.0590 on the main FX platform. The 50-Day SMA seen at 1.0597. Most sell orders are scattered above 1.0655. Option strikes expiring today, 1.0600 for Eur900mio and 1.0500 for Eur1.2bn.

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