ECB fears Bank Crisis in 2010. NZ leaves rates unchanged. Brazil cuts rates by 100bps. Nikkei trades above 10,000 for the first time since October 2008 Japan Q1 GDP revised to -3.8% from -4%. China still a net importer of steel in May. Australia May unemployment 5.7%, only 1700 jobs lost. AUDUSD rallies hard back above 81c on the back of much better than expected Job numbers. China May Trade Surplus $13.39 bio, exports fall 26.4% yr/yr. China Jan-May urban fixed asset investment up 32.9%. Asian Central Bank seen selling AUDUSD above 81c.
AUDUSD the main focus today, reporting much better than expected job numbers and sending the currency higher within seconds. AUD was trading at 8045 before the data, then 8080 immediately after. Within minutes it was above 81c as shorts covered. Asian Central bank was seen selling in the afternoon above 81c sending it back down to 8080 but the buying interest on dips was strong sending AUD back up to 8020 late afternoon. USDJPY was well supported in early trade as Japanese Institutions bought it up to 98.40 before US dollar weakness across the board and Yen cross selling saw it trade back to 97.70 late afternoon. Unusually, EURJPY was contained within 50 pips with 137.00 area well supported and sellers 137.60. EURUSD sellers at 1.4040 cap the morning rallies but dips brief and were well sought after, trading back up to test the sellers at 1.4060 late afternoon…. The level to watch into the European open. Ranges: AUDUSD 8010 - 8121 EURUSD 1.3959 - 1.4060 USDJPY 97.71 - 98.29 EURJPY 137.10 - 137.66 GBPUSD 1.6337 - 1.6433 Goodluck, Sam