ForexLive Asian market wrap: Stop-loss runs but little else

Author: Sean Lee | Category: News

Author: Sean Lee

  • China likely to lower economic growth targets
  • Australian PM calls for leadership ballot as ex-PM prepares challenge
  • Regional shares generally lower by over 0.5%
  • Gold stays firm ahead of large option expiries later tonight

Main action in mornig trade surrounded the AUD which had a bearish feel after Kevin Rudd more or less confirmed that he will challenge for the Australian PM position on Monday by trying to oust Julia Gillard. This increased bearish sentiment and with stocks opening lower and the story on Chinese growth, all of which brought a 1.0600 barrier and stops below into focus. Surprisingly, once the stops were done, a large number of buyers emerged and the AUD/USD jumped sharply by 35 pips and has drifted slowly higher since. Ranges: 1.0593/1.0653

USD/JPY has had a fairly quiet session inside a 30 pip range, with buyers expected near 79.80 and another barrier at 80.50 ensuring range trading. Corporate flows towards the end of the month are also weighing on the pair. Ranges: 80.04/34

EUR/USD has had another rest day, following leads from the AUD/USD and reacting to some small flows in EUR/JPY. Talk that Asian Sovereigns have been good-sized buyers in the cross over the last few days has also been doing the rounds of interbank dealing rooms. Ranges: 1.3229/65