Published at 02:00 (GMT) 12 Aug
USD/JPY supported by firmer Nikkei now +0.42%, and broadly firmer USD. Though vulnerable to downside on Cross/JPY sales as EUR, GBP, AUD. NZD lower. AUD/JPY at 94.65-70, NZD/JPY at 86.40-45, GBP/JPY at 171.60-65, EUR/JPY at 136.75-80.
Nikkei vulnerable to any risk aversion, having been supported by well-advertised comments on reported GPIF Portfolio shifts. Up stocks to more than 20% from 12%. Down JGBs from 60% to 40%.
USD/JPY trading between 20-25 pips raneg of 102.19 to 102.36 so far. Offers from Japanese exporters, eye carmakers, Asian accounts, real money, Asian Cbs, options 102.40-50 and rallies to 103 handle again. Bids at 102.20-30, weak stops below 102.20 now. Then 102.00-10. Stops below 101.80. Focus on key 2-week lows of 101.51.
NZD/JPY at 86.40-45, offers 86.80-00, bids at 86.00-10. 2-way Japanese investors, funds and models interest. Focus still on the 5-month lows of 85.70-75 seen on Friday. Lowest since March 5 85.52. NZD/USD at 0.8441-45, offers 0.8480-00, bids at 2-month lows of 0.8422-23, stops below 0.8420/ 0.8400. With Kiwi weighed by recent sharp fall in Dairy prices, and also Fonterra milk payouts - weighing on economy and growth. WL
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