Chinese Premier Li Keqiang announced at the annual National People’s Congress this morning that 2015 growth target will be around 7%. Premier also lowered inflation target to 3% from 3.5%.
RBA Deputy Governor Philip Lowe spoke in Sydney and said further easing maybe appropriate. But he also added that the Aud level is close to fair value and RBA intention is not to get Aud lower with policy but to get the economy going. Those last words sent AudUsd up to 0.7840. I’m told of residual stop buy orders atop 0.7860. With RBNZ looking at more macro-prudential measures, our traders recommending long AudNzd into RBNZ next week, stop loss beneath 1.0280.
Back to narrow ranges for UsdJpy and EurUsd. Feels like UsdJpy is trapped in this 119.50-120.00 range. I saw fast money leaving tight stop at 119.50 and looking to take profit above 120.00. However, I am told of decent stop at 119.45 away from non-Japanese while the same sell orders above 120.00. In EurUsd, light buying reported at 1.1050 and low 1.1010-20 as well. Sell orders at 1.1110 but hearsay stops built up above 1.1130.
Slight selling of EurJpy late morning, after the JGB auction – gave EurUsd a nudge into sixties.