| Currency <?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" /> | Daily Percentage Change (%) | Intraday High | Intraday Low | Day's Range (pips) |
| USDJPY | -0.9% | 112.93 | 111.33 | 160 |
| USDCHF | -1.0% | 1.2228 | 1.2053 | 175 |
AUDUSD | +0.8% | 0.7521 | 0.7446 | 75 |
USDJPY<?xml:namespace prefix = o ns = "urn:schemas-microsoft-com:office:office" />
Yen <?xml:namespace prefix = st1 ns = "urn:schemas-microsoft-com:office:smarttags" />Powers, Finds Quick Support
Yen strengthened on the day following the decline in US employment data with previous mutual fund buying for overseas operations disappearing and opening the currency pair up for a precipitous decline through the key 112 figure. Heading into the midday and afternoon trading, notable bids were taken by US investment banks, propping the pair up heading into the weeks close. Subsequent pressure from EURJPY sellers mounted on the USDJPY, taking the major slightly lower on cross pressure. Looking ahead, traders will be concerned with plenty of tepid data to slated for release next week. Most important will be the capital expenditures figure as increasing corporate investment has lent recent strength to growth prospects.
Rumormill
With stops surrounding the formidable 113 figure, on an unexpired 113.50 level, bidding looks to remerge at the 111.00 figure and slightly below. This is likely to keep the underlying pair in the same range over the past couple of weeks.
USDCHF
US Employment Powers Swissie
Swiss strength came on the heels of Dollar weakness as US unemployment report results stole the days show. Adding only 75,000 positions to the overall economy, the employment report fell way short of the 170,000 expected. Not only does this break below the recent string of six figure additions, the survey results spark speculation of a near term halt in interest rates as Fed officials remain wary of incoming economic data. Futures bets seem to concur as a 70 percent probability for a rate hike has been reduced to a minimal 40 percent in the near dated contract. Seemingly, a rather sized order run through a large US institution seems to have added to dollar weakness with cross selling in GBPCHF and EURCHF exacerbating the decline.
Rumormill
Offers continue to be tipped at 1.2225 adding downward pressure on the underlying currency pair with even further selling pressure cited above at the even 1.2250 figure. Although bidding seems to be emerging at the session low, interest looks thin till the 1.2000 figure.
Manufacturing Keeps NZD Weighed
Aussie, in similar fashion to most of the major action, got a lift from dour US employment figures in the morning session. Further buoyed by a rebound in overextended commodity prices, the underlying currency pair moved higher as selling pressures continues to surround the 0.7520 and 0.7550 figures. Headed into next week, key reports including business inventories and company profits with the ANZ job ads report are due with most of the focus being shifted toward the Reserve Bank of Australias decision in mid week action. Although not expected to augment rates, the market will be looking for any indication heading into the July consumer price index data.
