Published at 05:55 (GMT) 10 Nov
FX NOW! AUD/USD, GBP/AUD FLOWS – AUD stops hit; GBP/AUD 1-m highs; 1.0100 OPTIONS
Cautious markets, ahead of Europe/ London opennings, with Europe/ UK stock futures seen pointing down – between 1.5-2.0%, on ongoing global risk aversion. And more waves of EUR, EUR/Crosses selling interest, Focus on any fresh news out of Greece and Italy, and with pressure now on France as well, being the second largest eurozone economy. Some focus on France likely, now that Italy is under the spotlight.
On FX, EUR/USD at 1.3540-45, after rising to briefly above 1.3550 level. AUD/USD at 1.0145-48, after stoploss hit above 1.0155-60 to 1.0165 earlier on Asian accounts, big 4 Australia banks buying, Aussie corporates, real money demand. Interest still to sell on AUD/USD on rallies given the ongoing eurozone concerns, and with market pricing in more RBA cuts in next 12-months, even as jobs came in as expected, 10,100 for October. But concerns over employment over the next few months remain on slowing economy. AUD/USD options at 1.0100/ 1.0075. but stoploss below Parity first. GBP/AUD hit 1-m highs above 1.5710-20 – with GBP/Crosses surprisingly firm in recent sessions, including GBP/SGD – more next, as Cable makes headways against EUR on concerns over eurozone future. GBP/AUD at highest since Oct 12 1.5761. Could see more short-covering on back of funds, hedge funds and UK clearers, corporates demand,. Eye test of 1.5800. WL
