Closed in NY at $1.6221 after rate had recovered off extended lows of $1.6185 to $1.6236. Rate stepped its way back up to that $1.6236 in early Asian trade, as risk was given an early boost on release of stronger than forecast NZ data. However, reports that coal imports to China had fallen, along with uninspiring HSBC China PMI data, prompted sales of Aussie and weighed back on the early risk sentiment. Cable tracked euro-dollar lower, trading to a session low of $1.6198, before settling around the figure into early Europe. Euro-sterling reflected that cable trailed euro-dollar lower as the cross squeezed down from early highs at stg0.8045 to stg0.8023, with continued pressure into early Europe extending the move to stg0.80205. Euro seen under pressure via the crosses in to Europe, with moves seen adding weight to cable as it extends slippage to $1.6189, though so far holding off challenging the stronger $1.6185/80 area. A break here to expose the $1.6170/60 area where traders Wednesday said they would be interested buyers. Stronger demand noted at $1.6150/40. Offers $1.6220/25. UK retail sales 0830GMT.
EasyForex News Research Team