Closed in NY at $1.3325, off pullback lows of $1.3315, seen after the rate was sold down in reaction to Fed Bernanke comments, or rather no reference to possible Q3. Rate marked lows in Asia at $1.3318 in opening trade before pushing higher, the move seen influenced by cross yen demand, which in turn was led by AUD/JPY buying. Rate moved above $1.3340 to trigger stops, the release of stronger than forecast (and pre release rumoured) China PMI data took rate on to $1.3345. Rate settled for a while between $1.3330/45 before extending the topside to $1.33565 ($1.3355 23.6% $1.3486/1.3315) ahead of the European open, with rate easing back to $1.3335/45 into the session. Asian traders have mentioned in early reports that demand seen placed between $1.3320/00, with Asian sovereign demand concentrated between $1.3310/00 with stops below. Offers $1.3355/60, a break to open a move toward $1.3380/00. Large upside stops are said to reside above $1.3440. Eurozone mfg PMI’s due today but overshadowing this will be the meeting of ISDA to decide whether Greek debt swap is a credit event.
EasyForexNews Research Team