* Euro off to a subdued start in Asia after last week’s fall
* Global economy worries taking shine off commodity
currencies
* Japan GDP, euro zone data eyed
By Ian Chua
SYDNEY, Aug 13 (Reuters) – The currency markets got off to a
nondescript start on Monday, with commodity currencies under
mild pressure first thing as investors continued to worry about
the health of the global economy following last week’s
disappointing Chinese data.
The euro, however, was barely changed from where it closed
in New York at $1.2285, having retreated from a one-month
high around $1.2444 set last week. It was also steady on the yen
at 96.16.
The single currency had benefited from high expectations the
European Central Bank will put in place measures to lower
crippling borrowing costs for highly indebted countries such as
Spain and Italy as soon as next month.
Equally subdued, the dollar index stood at 82.575,
not far off a one-week high of 82.870 reached Friday. Against
the yen, the greenback was steady at 78.28, holding well
within its prevailing 78.00-78.80 range.
Japan’s second-quarter growth report is up next at 2350 GMT
and the consensus is for the world’s third biggest economy to
slow further.
Last Friday, Beijing reported weak trade and bank lending
data that took the shine off high-flying commodity currencies
like the Australian dollar.
The Aussie last stood at $1.0555 versus $1.0572
late in New York on Friday, while its New Zealand counterpart
slipped to $0.8124 from $0.8131.
Still, both Antipodean currencies held near multi-month
peaks, underpinned by hopes that major central banks will soon
act to stimulate their economies.
Figures from the Commodity Futures Trading Commission on
Friday showed speculators had been betting in favour of the
Aussie and kiwi.
“It looks like the IMM community is becoming even more
positive on the commodity currencies including AUD, CAD, and NZD
as they continue to accumulate long positions,” noted analysts
at BNP Paribas.
“Positioning is nowhere near extremes and would suggest that
commodity currencies could have further to run as prospects rise
of QE from the Fed and ECB.”
However, the strength of their commodity currencies are
worrying policymakers in Australia and New Zealand.
New Zealand’s finance minister on Monday said the kiwi
dollar was too high and making rebalancing of the economy more
difficult. Last week, the Reserve Bank of Australia warned that
a strong local dollar could constrain the economy.
Markets will also be keeping a close eye on a slew of euro
zone second-quarter economic output data due on Monday and
Tuesday, which will no doubt heap more pressure on EU leaders to
rescue the region from recession.
