From the FXWW Chatroom – Risk-off in Asia; Nikkei opened up in red with no bounce at all. Speculative names along with Japanese names sold UsdJpy and AudJpy. UsdJpy reached low 120.60 and small fixing demand surfaced. Our trader Jon said the UsdJpy temporary support at 119.60 and after we got to 119.56, Jon remarked that UsdJpy doesn’t like it down there. The big support is now at 119.35. Jon sees the mid-term range for now 119-121. Fresh intraday offers are now above 119.85. Risk-off buy Euro and sell Usd, Aussie, sell Nzd. EurUsd chewed away good offers 1.1245 to take out stops above 1.1250. I read from one newswire sell orders expected above 1.1290 and ours kick in only from 1.1310.
Fall in commodities, ASX below 5k and a risk-off sentiment dented the AudJpy, thus taking AudUsd below 0.6950. Offshore names were seen buying into the 0.6940’s but Aussie banks were the sellers. Just a reminder, there is a decent option expiry tomorrow strike 0.6900 worth more than Aud4bn.
Canadian dollar weakened to 1.3412 – volume was light and most of the buyers on the way up were non-Canadians.
Speculators who sold USDCNH yesterday for the roll were taking back their shorts today. The pair printed overnight low 6.3572 and one rumourmonger cited intervention activity but I seriously doubt it. By midday the USDCNH was paid back up to 6.3715 from 6.3615.
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