Day with Japanese targeting AUDJPY stops, and the risk selling continued all day. AUD the massive mover overnight falling from 1.0180 to our current low of .9927. Asian Equities trashed with KOSPI down 9.3% at one point (down 8% currently) and US equity futures down 2.5 to 3%. China CPI at 6.5% (6.4 expected) didn’t matter as the slight bounce only allowed for more AUD selling. It appears the BOJ have sacrificed the retail investors as crossjpy has been killed. They continued their endless jaw-boning (all comments from BOJ minutes, and Noda below) but were not seen in the market. Again we witnessed a false intervention move (like Friday) where USDJPY jumped 70 points in 30 seconds to 77.86 before dropping back to 77.15.
Crazy price action continued as the market witnesses a massive short squeeze in the AUD bouncing through 1.0010 to 1.0090 in less than 4 min. By 4.45am (Ldn) Equities were bouncing off their lows, with KOSPI only down 5.9% and S&Ps down 1.8%.
The bounce continued in equities, ASX turns positive on the day, as AUDUSD trades back to 1.0179. Now unchanged on our day. US equities only down 1.5% now. New High in Gold was 1772.20, we are back to 1755.40
HSBC Global Research