Intra-Day Market Moving News and Views
21 Oct 2014 01:30GMT
USD/JPY - ..... In total stark contrast to yesterday's biddish tone in Tokyo session, dlr remains under pressure in Tokyo morning as renewed weakness in global stocks on Mon pushed the Nikkei in the red (N225 index currently down 92 points at 15019 after yesterday's spectacular 578-points rally to 15111, being the strongest rise in over a year).
Light stops were tripped after dlr met renewed selling at 107.01 n briefly penetrated NY low of 106.79 to 106.70. The lack of a recovery suggests intra-day downside bias remains for a correction of y'day's rally from a 5-week low of 105.20.
Traders cited broad-based yen buying on risk aversion due to the upcoming China GDP as street forecast is looking for Q3 annual growth to slow down to 7.2% vs prev. reading of 7.5%.
So short-term specs are buying yen/selling dlr ahead of the downbeat China GDP.
Offers are noted at 107.00/10 n more abv with minor bids at 106.70, stops below 106.60-50 are now in focus.
AUD/USD - .......RBA meeting minutes:
'most prudent course likely to be a period of stability for rates;
despite recent fall, a$ remained high by historical standards;
in recent months there had been a further pick up in lending to housing investors;
members discussed importance for banks to maintain strong lending standards;
range of indicators suggested labour market was subdued but had stabilised somewhat this year;
forward-looking indicators pointed to modest employment growth ahead; wage growth to remain relatively slow near term, help contain inflation even with A$ lower;
historically slow wage growth consistent with spare capacity in labour market;
more timely indicators suggested moderate growth overall had continued into Q3;
consumption was likely to be supported by ongoing strength in housing; members observed most Australian iron ore production remained profitable following price fall;
members were briefed that Chinese authorities had scope to ease policy if needed to support growth.'
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