Asian Summary, July 27th 2010

By @ibtimes on

The Euro remained elevated just off of two month highs after strong gains earlier in New York due in part to solid home sales data and positive earnings that propelled equities and risk higher. New York trading saw new home sales and better than expected earnings from Fed Ex add to the demand for risk, moving the EUR/USD to current levels just over 1.3000 from yesterday’s levels closer to 1.2900. However, after the dynamic moves witnessed earlier, the Asian session was light on excitement.

With light data and a lack of breaking news, markets mostly traded in ranges at elevated levels. The EUR/USD remained in striking distance of fresh two month highs near 1.3028 as investors seem satisfied with the validity as well as outcome of Friday’s bank stress tests. Against the Yen, the European unit was able to flirt with resistance at 113.30 but with no print over that price. GBP/JPY pushed over 135.00, and the AUD/JPY capped a 30 pip move near 78.50. USD/JPY was almost immobile in a 86.85 to 87.05 range for the duration of the trade session.

GBP/USD was able to post a fresh 5 month high of 1.5528, but resistance was fierce and the elevated levels short lived. The AUD/USD made session highs over the 0.9025 mark which was still shy of earlier NY highs nearer to 0.9035. Tomorrow’s Australian CPI data will be a marquis risk event for the day as it will help cut a clearer path as to the possible future moves of the RBA. Recent statements from the central bank have singled out the data event for its importance in formulation the next rate decision. Australian CPI due at 1:30GMT has a forecast of 1.0% versus a prior of 0.9%.

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