While you were sleeping 07/09/11

The most important news overnight were coming from Australia and market’s expectation for BOJ.

Australian economy grew faster than exepected in Q2. It grew by of 1.2% yoy driven by business investment, household spending and a build-up in inventories. What more important it comes after a drop in Q1 GDP of 0.9% yoy. More here.

Here is one way to explain what has happened overnight in FX and Equity Markets in Asia. Note that everyone is now positioning for a BOJ intervention. Also, today’s release of the Beige Book should give more clues about the state of the US economy.

Everyone hears the conventional crowd wisdom that September is a tough month for trading. Here is some proof.

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