The pair closed in NY Friday at $1.3218 after reaction to the release of US NFP had seen rate initially jump up to trigger stops above $1.3280 then reverse to trigger stops sub $1.3220 before making a show under $1.3200 before edging back into the close. Chinese traded data, released Saturday, had shown a slump in imports which in turn weighed on the AUD into its open, with the marking down of this rate pressing back on euro-dollar. Rate touched an early low of $1.3181, as weak stops through $1.3190 were targeted and triggered, though the added weight failed to challenge larger stops sub $1.3180. Rate recovered to $1.3229 but move met supply which countered and pressed rate back to $1.3191 ahead of the European open. Chine close today (returning Thursday) as well as other centre holidays in the Asian area led to thin markets with low volumes able to influence. French BOF biz. sent., IP and mfg output due at 0645GMT ahead of Italain IP 0800GMT. EZ Sentix at 0830GMT ahead of Italian GDP at 0900GMT provide morning interest, though doubtful of major influence. Fall out from Friday’s US data will continue to drive as well as uncertainty over German Constitutional Court (Tue-Wed) ruling on EZ response framework.
