Monthly fall in line with expectations,  with the y/y slightly worse than expectations of -1.5%

June sales confirmed at +0.1%m/m, and y/y revised down  to -0.9% y/y from -1.2%

‘Bit more stable next year’  Shit, it’s bloody ‘stable’ now!!!  What’s to become of us if it’s ‘more stable next year’

• Expects euro zone to exist in the same form a year from now (me too)

We sit at 1.2510.

What’ll we see first 1.2460 or 1.2560?

Reason/s for choice as usual appreciated but not obligatory.

AUD/USD ‘s been on the back foot since the 1.0200 barrier was flushed in the Asia session tripping some stops through 1.0190, and more recently through 1.0170 as Japanese names join the sell off post earlier GDP numbers and falling iron ore prices..

More sell stops lie on a break of 1.0150

Sentiment towards a possible RBA cut is now starting to build again and ongoing sales of AUD/JPY,  and EUR/AUD buying, are keeping downward pressure on the AUD in general. Talk of CTA’s  and hedge funds also amongst the mix of sellers today.

AUD/JPY sell stops were apparently tripped on a break  of 79.80, but there are some bids down at 79.50/60 ahead of the June 25 lows around 79.30.

EUR/AUD has some resistance ahead sitting up at the  100 day MA around 1.2321

AUD’s at  1.0170, AUD/JPy at 79.74 and EUR /AUD  at 1.2297

EUR/USD continuing its’ sloooooow drift against the backdrop of mild risk aversion.

We’re at 1.2505.

Talk of sell stops through, wait for it……

1.2500

1.2490

1.2480

1.2475

Just soooooo much choice.  What’s a girl to do?

Nicked from our good friends at FXstreet.com

Down from flash reading of  47.5 and below July’s reading of 47.9

New business 44.7 (Fl;ash 45.0) and slightly higher from 44.5 in July

Final composite 46.3 (flash 46.6) from  46.5 in July, rmployment index  47.5 (flash 47.7) after 47.2 in July

All in all  PMI’s point to  a 0.5-0.6% contraction in Q3 2012 according to Markit

The Sydney Morning Herald.

I think this is the first time eva I’ve posted an article from The Sydney Morning Herald.

Life is just sooooo exciting at times

AUD/USD hits session low 1.0170. Congratulations to the 7 aussie bears in the last 1.0170-1.0370 poll

..not good at all and the lowest since July 2009

Business expectatations rise to 50.9 from 48.7 in July (first reading above 50 since May)

August Final composite PMI 47.0 from 47.5 in July (lowest since June 2009)

From flash reading of 50.2 and 50.0 in July

August composite PMI 48.0 (flash 48.9) from a final July reading of 47.9

…from 43.0 in July and against expectations of 43.0, but still a 15th consecutive month of contraction

New orders rose to 44.2 from 38.8 in July,

• Remains ‘skeptical’ on negative rates
• SNB franc ceiling of decisive importance
• Franc fair value remains around 1.3000
• No imminent need for emergency measures
• Crisis measures would be ‘extraordinary’
• Swiss banking secrecy will remain in place

Anyone out there still think the Swiss are going to dispense with the EUR/CHF peg in the foreseeable future?  Yer right………

FRANKFURT (MNI) – A hard cap on sovereign bond yields set by the
European Central Bank is “very unlikely” to be part of the ECB’s new
bond buying program, German daily newspaper Frankfurter Allgemeine
Zeitung quoted a central bank official as saying in an article on
Wednesday.

Still, the possibility of a yield cap has not been ruled out, the
central bank official told the paper. Among the certain elements is that
any sovereign bond buys will continue to be sterilized, as with the
current SMP program, FAZ reported.

MNI’s ECB Sources story from last week also said the ECB was
unlikely to target a maximum level for peripheral bond yields, with one
senior Eurosystem official calling them “very dangerous.”

Rather than setting any explicit target, which could tie the ECB’s
hands, the central bank might consider conducting massive short-term
interventions in order to hit speculators hard and stop “panic pricing,”
this official suggested.

ECB President Mario Draghi is set to unveil details of the new bond
buy program at his press conference after the Governing Council meeting
Thursday.

– Frankfurt bureau: +49 69 720 142; email: ccermak@mni-news.com –

[TOPICS: M$X$$$,M$$EC$,MGX$$$,M$$CR$]

Bloomberg carrying official’s comments.

• EU to do whatever needed to safeguard stability
• To do whatever needed for euro stability
• ‘Not at end of the road’  in fighting crisis
• To do what is necessary to make euro safe
• Confident EU will overcome the crisis
• Portugal is performing well
• Ireland is on track
• Risk premiums are not always justified
• Getting hard to conduct single monetary policy (was always gonna be the way pumpkin)
• Supports central bank’s efforts
• Euro ‘is here to stay’
• Defense of euro is central to foreign policy
• Italy adopted impressive structural reforms

Yada, yada, yada……

• Interest rate policy not available at present

LONDON ((MNI) – The Bank Of England said Wednesday it was offering
an unlimited supply of U.S. dollars in a 7-day operation.

The settlement date on the 7-day op was Sep 6 maturing Sept 13
2012. The Bank said the repo would be at a fixed-rate, with the rate to
be set at 0.63%.

–London Bureau; Tel: +442076341655; email: ukeditorial@marketnews.com

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

Weaker than Reuter’s median forecasts of +0.1%, -0.4% respectively.

Oh dear. Betta watch those deflationary pressures

slight rise from 43.7  in July and above expectations of 43.3, but hardly promising as it’s the 14th consecutive  month of contraction

New business index  jumps to 43.3 from 40.8 in July, highest since March 2012

Bloomberg headline.

The German Finance Minister, speaking on Bavarian radio, said “If the Dutch were to ask me I would always plead for them not to vote for euro-sceptic policies” adding “I advocate the same in Germany.”

Dutch election looms on September 12th.

• Rising rates, lower growth could raise default risk
• SNB will monitor situation for need of buffer
• Buffer would only target mortgage, property markets
• Countercyclical capital buffer ‘important step’
• Gradual buildup of imbalances on property market
• Some signs of slowing momentum on mortgage market
• Sees buildup of stability risk
• Buffer would be used in ‘balanced, flexible way’
• No room for complacency over recovery

SWISS, WORLD MUST ACT TO AVOID NEW CRISIS!!!!

Bloomberg reporting.

Happy Dayz