Asian forex market wrap: equity markets rally, RBA bullish

Fri, Nov 6 2009, 04:55 GMT
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The latest RBA statement revises GDP forecasts upward, suggests more interest rate rises are on the way Regional equity markets rise by around 1% on average Gold hangs onto gains above $1090/oz RBA Governor also warns that current account deficit will widen on a continuing mining boom China says it will protect it's industry interests after the US imposed punitive taxes on Chinese steel pipes Another disappointingly slow day in Asia with many traders unwilling to get involved ahead of the NFP numbers tonight in the US. Strong early rallies on regional bourses and a bullish statement from the RBA were today's main events. AUD/USD jumped from its lows around .9095 to .9130 immediately after the RBA statement but the doldrums have again set in during the afternoon. Dealers refer to good sized stops above .9180 but otherwise interest was very muted. Range: .9093/.9135. USD/JPY has traded in a 90.58/85 range and many of the JPY crosses slipped lower early in the session despite the strong performance on equity markets. Overall, interest has been very poor as seen by the 27 pip range in a major currency pairing. EUR and GBP have been similarly quiet. Cable traded to a session low of 1.6560 during the morning session but bids at 1.6550 from 'directional accounts' dissuaded further selling. The range in cable has been 1.6560/1.6617 and EUR/USD has traded a paltry 23 pip range, 1.4857/80. Markets: Nikkei +1%, Kospi +0.9%, Sydney +1.1%, HK +1.4%. Gold steady $1091/oz, oil steady $80/bbl.

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