Some talk today from the FXWW Chatroom

One of the major Japanese bank was unusually early – started bidding UsdJpy at the NY close from 102.56. Same guy pushed Usd towards 102.60 but offers started to appear in the platforms at 102.64-65. I heard there are better bids located below 102.40 while sell orders lurk from 102.80 to 103.00.

Since the release of the NZ PPI this morning, Kiwi has been weak with no bounce. New Zealand Q2 PPI came out weaker than last quarter – output fell 0.5% while input contracted 1%. Nzd moved from 0.8474 to 0.8455. Finance Minister Bill English ruled out announcing them ahead of the election. He also that in spite of the ongoing economic recovery there was no room for what he called the Opposition’s “random dumb spending approach” – this pressured the Nzd to 0.8440. AudNzd interest came through, cross was paid up to 1.1059 and nudged the NzdUsd towards 0.8429. Nzd bounced off 0.8426, same time offers in AudNzd appeared ahead of 1.1070.

AudNzd demand kept AudUsd bid throughout the morning. Then the RBA Minutes sent Aud down to 0.9319 then bounced back to 0.9338. I understand that the overall market position index is short AudUsd and we might see some pain ahead of RBA Stevens’ Semi-Annual Testimony tomorrow.

Interests reported on both sides of EurUsd – buy orders noted below 1.3340 and offers after 1.3388. I heard the stop sell order placed at 1.3330 has increased; not surprising given that is a digital option.

Not a great deal on UsdCad; tight range of 1.0887-96. Orderbook suggesting better buying kicks in only below 1.0850, just like our strategist recommended buying the pair into low 1.08’s. Talk in the streets offers come in above 1.0920’s. 

HK man says.. Bought a round of UsdCad around 1.0900-02 for AAA name; good supply here…. 

*CHINA SAID TO PERMIT 3 MORE BANKS TO IMPORT GOLD: REUTERS 

GBP update: Big levelsAfter CPI, GBPUSD broke a huge level, the 200 day MA at 1.6674. In addition, EURGBP rejected key support level at 0.7985. It doesnt look good for Sterling going forward with a dovish CB, weakening data, and bid Fixed Income. Ten year yield differentials between the UK and the US are threatening to go negative, which would lead to more GBP selling. 

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