With no vital data, and no significant news, we had a very quiet day here in Asia with the risk aversion theme continuing from the New York session with sovereign debt once again the main culprit. A scheduled meeting between the US President and Greek Prime Minister Papandreou tomorrow is now firmly on the radar for most traders who are fleeing risk ahead of the summit. Greece will be looking for some support from the US Government in the quest to stem the speculators that they believe are responsible for the growing borrowing costs for the EU member. However, it remains to be seen what type of outcome Greece expects from this meeting besides some lip service or a mild endorsement of the cause.
The yen crosses remained under pressure today, dipping to 122.30 lows for the EUR/JPY and 134.80 in the GBP/JPY in moves that were one dimensional. USD/JPY dipped to 89.85 lows to complete a 45 pip drop for the day. EUR/USD was choppy for the session, churning between 1.3605 and 1.3635 with no news strong enough to break the range. AUD/USD traded in a similar fashion between 0.9100 and 0.9070, receiving a boost from better than expected NAB business confidence data. Australian home loans are on deck for tomorrow’s trade session.
Ahead keep an eye on the noted meeting between Greece and the US although it should just be a media event more than anything else. Also, tomorrow begins a series of Chinese data releases with Trade Balance. That data will be followed during the rest of the week by CPI, PPI and Aussie employment data.
