Asian Forex Wrap

NewZealand Q2 Output PPI -0.7%, CGPI rose 0.3% in June qtr. Citi Bk recommends selling GBPJPY, it falls back towards 156.00. Australia and China in a $50 Bln gas deal. Australia June leading economic index, -3.3% yr/yr. Chinese media talking up its stockmarket. RBA says Australian banks to face more demanding regulations. Asian stockmarkets shaky, Nikkei down 0.25%, Shanghai open up but now into negative territory. Gold higher at 940.00. Early morning Japanese bargain hunters bought EURJPY from 133.80 up towards 134.50, taking out some stops in EURUSD above 1.4160 in the process. However further gains were not seen as talk of a semi-governmental entity was seen selling USDJPY, sending it back to test the buyers at the 94.50 level(there is also talk of stops below 94.50). Other Yen crosses such as GBPJPY were also bought early morning, but that didnt last long, as profit takers on the back of the Citi Bk short GBPJPY recommendation, saw the pair back to 156.00. EURJPY followed as a weak Nikkei opening put a cap on risk. The Shanghai Composite index opened higher on the back of Media hype but was unable to hold onto positive territory, currently down 10 points. Market will be watching to see what happens this afternoon on Chinese stocks. EURUSD slipped back below the NY close but found bids ahead of the 1.4120 level, which seem to be holding it up for now. AUDUSD ran up above 83c on the back of AUDJPY buying, but the demand for straight AUDUSD was not strong enough to test the sellers above 8310. The AUDUSD then slipped back to find buyers towards the 8250 area, as traders trimmed intraday AUDJPY longs. Ranges: EURUSD 1.4123 - 1.4171 GBPUSD 1.6509 - 1.6592 USDJPY 94.48 - 94.95 EURJPY 133.48 - 134.49 AUDUSD 8256 - 8305