Asian Forex Wrap

Fed's Bullard says need to see more convincing data before raising rates. UK consumer confidence steady at -25 in August. NZ July new dwelling consents rise 5%. Japan jobless rate hits all time high of 5.7%. Japan consumer prices fall at record pace in July, -2.2% from a year ago. Another volatile session on the Shanghai Composite, down over 3% at one stage. Nikkei flat, gives back early gains. Gold slightly higher at 948.70 Another volatile session on the Shanghai Composite, but unlike other days, Yen crosses stayed relatively steady. Short covering of Yen crosses saw early morning demand push EURJPY up towards 135.00 but was unable to break through the offers on top with no follow through after the Tokyo fix. USDJPY offers above 94.00 and talk of stops below 93.00 kept it in the range before the weekend election. The jobless rate came in at a record 5.7% but as usual with Japanese data only a small movement was seen in USDJPY. EURUSD was very quiet with no real flows seen, its still the Chinese DNT option with barriers at 1.3950 & 14450, that everyone is talking about. AUDUSD was dragged up on the back of a short AUDJPY market, retesting the overnight highs above 8415. However, with the Shanghai composite slidding and the Nikkei giving back its early gains, the AUDUSD found an excuse to retrace back to the 8380 area. Ranges: EURUSD 1.4341 - 1.4376 GBPUSD 1.6260 - 1.6301 USDJPY 93.39 - 93.86 EURJPY 134.04 - 134.93 AUDUSD 8373 - 8414