Written by FastBrokers House
It has been a reasonably active session in Asia with first the New Zealand rate cut, then Australian job numbers abd finally the Chinese trade data to guarantee some volatility.
The AUD/USD was trading at 1.0105 before the jobs data but fell sharply to 1.0066 on the headline number. Once traders dug a little deeper into the data, the AUD/USD jumped straight back up to 1.0115. The Chinese data, whilst worse than expected, did not come as a total surprise as there had been rumours that the Chinese would engineer a poor number in order to help their negotiating position in upcoming US trade talks. The AUD/USD fell heavily nonetheless, from 1.0090 to a low of 1.0032. Ranges: 1.0032/1.0117
Most of the other pairs have followed the AUD/USD lead. EUR/USD opened at 1.3900 and tried to push higher first up but encountered some decent selling at the session high of 1.3925. The Chinese data and the falling AUD/USD encouraged these early session longs to bail. Ranges: EUR/USD 1.3865/1.3925, EUR/CHF 1.2898/1.2940
Cable has followed the lead of the other pairs, lagging in both directions. Traders have been unwilling to put on much risk ahead of tonights MPC. Ranges: 1.6172/1.6216, EUR/GBP .8566/90
USD/CHF .9277/.9319, USD/JPY 82.67/89
Market Commentary provided by FastBrokers.
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