Published at 02:56 (GMT) 3 Aug
Start of new month; August today. Relatively quiet markets, after the choppy Friday sessions. Where USD slumped as markets took the weak +0.2% q/q Q2 Employment Cost Index for US, lowest in 33-years as "confirmation" that Fed will not hike on Sep 16-17. Though USD as recovered most of the losses.
Focus on Friday's US NFP for more "concrete" clues. USD/JPY back up at 124.02-05, offers at 124.50-60. BoJ Kuroda REER JPY is weak levels on Jun 10. Now a natural and psychological resistance. As USD/JPY slumped 2 Yen from 124.50-60 to 122.40-50 on Jun 10.
EUR/JPY at 136.06-10, offers at 136.50/137.00. From Japanese exporters, banks on rallies. Given ongoing focus on Eurozone news, especially Greece.
Focus on China stock markets today, after China Manufacturing PMI of 50.0. For any further downside pressure on Shanghai index. Also rumours of PBoC/ CSRC/ CBRC / NDRC. Shanghai index closed on Friday at 3,663.7256. Support at 3,500/3,300 and the year lows of 3.049.111 seen on 9 Feb. Before series of PBoC easing, rally to Jun 12 pea, of 5.178.191. Good to watch.
Nikkei -0.42%, or -86.50 at 20.498.74.
Cross/JPY vulnerable to downside on any risk aversion.
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