The start of the new trading week in Asia was a quiet one ahead of tomorrow’s US Independence Day holiday. Markets failed to make any dramatic moves in listless trading that was highlighted by little news and little data and an overall demeanor of indecision. The Euro traded just off of Friday’s 1.2610 highs after tepid employment data and a fear of a slowing US economy pushed the European currency to a level not seen since late May. US employment data showed that -125K jobs were lost as opposed to the projected loss of -106K. EUR/USD was steady between 1.2560 and 1.2520 as players stood on the sideline ahead of the US holiday.
Risk remained neutral for the day after a sidestep lower on a possible bomb threat at New York’s JFK airport which eventually proved false. The Yen crosses remained sideways and range bound, with EUR/JPY cruising between 109.95 and 110.30, and GBP/JPY slightly firmer near 133.50 after earlier lows near 133.10. Asian equities were mixed on the day and USD/JPY again maintained a 30 pip range with the pair exiting the session near 88.00 highs.
The mover and shaker of the day was the AUD/USD which saw an early low of 0.8375 erased after some chatter out of China pertaining to GDP growth in the ballpark of 10%. The pair eventually touched a summit of 0.8450 despite subpar job advertisement data (2.7% versus an expected 4.3% early in the day.
With the US out on holiday, it’s easy to look ahead to tomorrow’s Asian session for the first real taste of action this week with Australian Trade Balance data followed up by the RBA rate decision.