Market anticipating large end-of-month flows tomorrow
Most of this turnover is likely to happen early in tomorrow’s NY session, when institutional asset managers rebalance after big moves this month. The market gossip has been that USD/JPY and AUD/USD will be the big movers, with selling expected to be heavy in both. No doubt that’s why AUD/JPY has been heavy this week with speculators getting short in anticipation of these flows. If they don’t eventuate, it could be a nasty sell-rumour-buy-fact play!