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Asian FX market wrap: quiet session for all the majors

  • Australian December trade deficit AUD2.25bln, slightly better than expected
  • Fitch rating agency cuts some Chinese banks
  • Nationwide UK consumer confidence index rose in January
  • Regional stockmarket rise by around 1% on average
  • Gold consolidates overnight gains above $1100/oz

All of the majors have had a very quiet session today and this is a follow on from NY, which was also quiet.

EUR/USD tried to rally in early trade with the market aware that the BIS has been a significant buyer on any dips towards 1.3930 in the last 12 hours or so. Not even this was enough to galvanise some interest and as momentum waned, the longs were forced to give up and await another day. Range: 1.5947/76

Cable showed the most potential with the improving consumer confidence numbers encouraging some dealers to aim at stops above 1.6010. They ran into good sized real money offers just above 1.6000 and I am told that the same funds who bought at 1.6000 last week on the dip are now selling at breakeven. This certaily doesn't show a lot of confidence in their own trading calls or in the GBP. More stops are tipped above 1.6030. Range: 1.5968/1.6006

USD/JPY has also had a quiet session inside a 25 pip range, 90.31/56. The AUD/USD market was awash with stories of big stop/loss buy orders, starting above 88.90, but the pair was unable to get past .8883 which has me suspecting that the stop/loss stories were in fact that, stories. Nevertheless corporate interest is again eyed at .8770/90 and the bears will need to break below there before they can claim that another down leg has emerged. Range: .8829/83

Markets: Nikkei +0.3%, Kospi +1%, All Ords +1%, HK +1.1%, Shanghai +0.7%. Gold -0.3% at $1114/oz.