Foreign demand for domestic bonds has kept the AUD firm despite falling prices in raw materials, and Pimco’s  Sydney based portfolio manager Adam Bowe is warning that the RBA may be forced to cut rates should  demand prevent a currency depreciation.

Odds in  the market of  a cut next month are currently running at  53% for a 25 bps cut to 3.25%

(Bloomberg)

Interesting

Mine make me feel like crap, so I’m glad they might be doing some good

Getting old sucks

Romney’s having another pop at the Chinese currency policy, blaming  them the high unemployment in the US, despite the fact  he made a large amount of his own wealth by trading with Chinese companies before  entering politics.

He has also vowed to declare China a currency manipulator on his first day as President.

All great for US- Chinese relationship building!.

Check out the latest polls Mitt ……!

More..  (Xinhua News)

Good show. You know it makes sense.

Up from Eur402.2 bln in July

Just don’t make the conditionality too severe ya hear

“Spain's financially-stressed regions had a public deficit of 0.9 percent of GDP in like-for-like terms in the first half of the year, putting them in line to meet their target for the full year of 1.5 percent”, Finance Minister Cristóbal Montoro said

“The regions are on course to comply with the target set for them for the end of the year," he added. “The regions are making an adjustment, an adjustment we should appreciate and celebrate. When we all get down to work, we are all involved in winning back confidence. We are all the state."

El Pais

More misery for the Spaniards (and others) after 12.6% drop in Q1, and the sharpest drop since 2007

EUR/USD: Offers 1.3070/80 (gap 4-7 May) and more ahead of another barrier at 1.3100. Bids 1.3000/10, some sell stops just below ahead of more bids 1.2980 down to 1.2950

GBP/USD:  Offers 1.6200/10.tech res 1.6240/50, possible buy stops above ahead of offers 1.6290/00.  Bids 1.6150/60 and 1.6110/20. Tech support 1.6070/80 below with likely sell stops through 1.6065

EUR/GBP:  Tech res 0.8075/80 and 0.8095/00. Bids 0.8025/35 and 0.8000/10, tech supp 0.7970/75 (tech 100 day MA 0.7970

USD/JPY:  Strong bids from 77.30 likely semi 0fficial, ahead of 77.00 barrier. Sell stops through 77.00 Offers from 77.75 up to 78.00 buy stops above ahead of more offers from  78.30 up to 78.50 (exporters)

EUR/JPY: Bids 100.90/00 and 100.50/60  sell stops below. Offers/tech res from 101.40 (Jun 29 high) up to 101.65, ahead of 200 day MA at 101.76 likely buy stops above.

AUD/JPY:  Bids /tech 81.80/95 (200 day MA 81.84, cloud top 81.93) , more tech supp at 55 day MA- 81.69.  Offers 82.20/30 and 82.70/80 (82.76 Aug 23 high)

EUR/CHF: Offers 1.2170/80 , tech res 1.2195/00, possible buy stops above through 1.2160. Bids 1.2090/00 and 1.2140/50 and 1.2080/90

AUD/USD:  Offers 1.0590/00 and 1.0610/20 buy stops. Bids 1.0530/40 and 1.0500/10

EUR/AUD:  Tech supp 1.2295/05 (100 day MA 1.2294) and bids below 1.2260/70, Offers  1.2330/40 and 1.2380/90.

First time since March. Presently at 4.94%

EUR/USD has extended rally as high as 1.3053 so far, presently at 1.3043.

Trailing sell stops now noted below 1.3000.  Some concentration of sell orders now up at 1.3070/80.

LONDON (MNI) – Ensuring a strong banking sector and supporting
lending and economic growth are not conflicting goals, Monetary Policy
Committee member and Bank of England executive director Paul Fisher said
Friday.

In an Op-Ed article in City AM, a London-based financial daily,
Fisher said not only was there no conflict, but “it is difficult to have
one without the other.”

Fisher, also a member of the Bank’s Financial Policy Committee
(FPC), says; “The banking system needs to be safer, it needs buffers in
case these risks were to crystallise. But that should not come at the
detriment of lending or risk-taking.”

– London Bureau (+20 7862 7499), ukeditorial@marketnews.

[TOPICS: MT$$$$,M$$BE$]

NICOSIA, Cyprus – Greece could be given extra time to meet its
deficit targets but is unlikely to be given additional time to implement
economic reform measures, Dutch Finance Minister Jan Kees de Jager said
on Friday.

“If the deficit turns out to be somewhat worse that expected
because of a downturn in the economy, there could be some flexibility,
but not much, and not additional money,” de Jager told journalists
before the Eurogroup meeting here.

But there can be “no time for delaying measures, because that it is
in interest of Greece,” he added.

On Spain, de Jager said that Madrid must continue “to show the
markets its commitment and determination” to reduce its deficits and
reform is economy.

“Spain is on the right track, but they have to continue to convince
the markets that they have a sound policy,” he said.

–Paris newsroom, +33142715540; jduffy@marketnews.com

[TOPICS: M$$CR$,M$X$$$,M$S$$$,M$Y$$$,MGX$$$]

Think what he’s trying to say here is, don’t bloody expect Germany to make up any difference….

• ECB has no mandate to finance states
• ECB will continue to fulfill mandate
• ECB can buy govt bonds to counter market distortions
• I respect Weidmann’s vote against ECB bond buying plan
• I have confidence in the ECB
• ECB hasn’t stated size of bond buys to fight speculation
• ECB won’t take decisions that lead to financing govts

Dow Jones reporting.

JAPAN DATA: Thursday, Sept. 20, 0850 JST (2350 GMT Wednesday): The
Ministry of Finance releases August trade data. Forecast: A deficit
worth Y840.0 billion, which would be a second straight monthly deficit
after a deficit of Y518.9 billion and a surplus of Y59.2 billion in
June; exports -7.7% y/y vs. -8.1% in July; imports -6.2% y/y vs. +2.1%
in July.

– See Separate Table For Details Of Individual Forecasts

TOKYO (MNI) – The following are the median forecasts for Japanese
economic data due in the coming week provided by economists surveyed by
MNI.

Japan’s trade deficit will grow sharply to Y840.0 billion in August
from Y518.9 billion in July, marking a deficit for the second straight
month on slower global demand, even though lower commodity prices will
lead to a fairly large import drop, economists said.

August exports are forecast to have fallen 7.7% on year, posting
the third consecutive drop after -8.1% in July and -2.3% in June, on
lower shipments of ships, automobiles and steel products.

Meanwhile, August imports are expected to have shrunk 6.2%, which
would be the first fall in two months after +2.1% in July and -2.2% in
June, led by lower prices of crude oil, non-ferrous metals and iron ore.

Economists expect Japan’s trade deficit will total Y4.03 trillion
in fiscal 2012 and Y2.46 trillion in fiscal 2013 after a Y4.42 trillion
deficit in fiscal 2011, according to the latest monthly survey by the
Japan Center for Economic Research.

Thursday, Sept. 20, 0850 JST (2350 GMT Wednesday): The Ministry of
Finance releases August trade data.

Forecast: A deficit worth Y840.0 billion, which would be a second
straight monthly deficit after a deficit of Y518.9 billion and a surplus
of Y59.2 billion in June; exports -7.7% y/y vs. -8.1% in July; imports
-6.2% y/y vs. +2.1% in July.

skodama@marketnews.com
** MNI Tokyo Newsroom: 81-3-6860-4823 **

[TOPICS: M$J$$$,M$A$$$,MAJDS$]

AUD/USD sits at 1.0575.

What’ll we see first, 1.0475 or 1.0675?

Reason/s for choice always welcome, but not obligatory.

• Sees no decisions at Finance Ministers’ talks

Congratulations to all those who plumped for 1.3000 in the last poll

Now we’ve formed a beach-head above 1.3000 do we go higher still?

We sit at 1.3025.

What’ll we see first, 1.2925 or 1.3125?

Reason/s for choice always welcome, but not obligatory.

Ain’t gonna tell ya…….

• Will discuss on Friday conditions for ECB intervention on secondary market

You show me yours, I’ll show ya mine…..

Don’t we all matey!!

• France, Germany are “understanding” for Irish request for direct bank recapitalisation.