FX,Asia Real Time News items

The dollar and yen came under pressure in Asian trading hours, with the dollar continuing to fluctuate after recent speculation over its future as the world's reserve currency.

However, the BRIC nations did not mention the issue in a closing statement to their latest summit, helping to limit the downside for the greenback.

Broadly speaking, major currencies were range-bound with little data of note and stock markets turning negative.

USD/JPY, which dropped to lows of 95.97 at the open, bounced back as high as 96.71.

EUR/JPY fell to lows of 132.55 only to surge back to highs of 134.30.

EUR/JPY's move higher helped underpin gains on EUR/USD from 1.3807 to highs of 1.3897.

Both EUR/JPY and EUR/USD were supported by talk of central bank bids.

The dollar extended Monday's gains into Asia Tuesday trading session, with heavy and aggressive JPY cross selling weighing on AUD/JPY, GBP/JPY, EUR/JPY and NZD/JPY and resulting in further losses for AUD/USD, GBP/USD, EUR/USD and NZD/USD in opening Asian trading.

The cross sales also forced USD/JPY to break the base of the recent range around 97.20/30 and fall to lows of 96.53, weighed down as well by the slide of over 2% in the Nikkei.

In fact, all Asian stocks markets (except Taiwan which fell 4% yesterday) were broadly lower after the DJIA losses on Monday. EUR/USD, which opened around 1.3800, dropped to lows of 1.3748 before bouncing as high as 1.3821 on short-covering.

Oil remained heavy, losing further ground and edging toward $70, though gold managed to gain back some minor ground, rising $6.00. Treasury bonds gained ground on the back of Asian regional stock weakness, sending yields lower.

The dollar mostly consolidated the latest losses that were seen on Thursday with EUR/USD consolidating around 1.4100 in a range of 1.4069-1.4128 while Cable traded initially around 1.6600, retreating as low as 1.6520 before bouncing.

AUD/USD was notably weak with selling reported from Asian central banks and selling against the EUR and NZD as well, dropping from 0.8200 to lows of 0.8124. But, in the wake of the week's volatility that often defied fundamentals, and ahead of the G-8, traders were happy to stay sidelined.

USD/JPY traded a range of 97.51-94 and well within the band of 97.30-98.50 that has contained recent dealings.

Of note were warnings from the chairman of the China Banking Regulatory Commission, asking whether positive signs in the economy for real, noting that the incongruity between the Chinese stock market gains while corporate profits are falling. Japan's Fin Yosano gave verbal support for USD assets stating stating that Japan's trust in "US Treasuries is absolutely unshakable."

Asian stocks were mixed with the Nikkei trading above 10,000.

Oil remained above $72 though pared some of its recent gains. US Treasury yields edged slightly lower after the decline in NY on Thursday.

Despite the retreat in the dollar on Monday in NY, the dollar again re-asserted itself in Asian trading on Tuesday.

The rise was prompted by fresh EUR losses in a delayed reaction to comments Monday from the IMF, that the eurozone recovery is uncertain, that the ECB should ease further and that Europe should launch a clean up of its banking system.

News that Obama administration was going to call for tougher European bank stress tests, also added to the pressure on the EUR.

EUR/USD fell from morning highs of 1.3936 to lows of 1.3854. The subsequent pressure on EUR/JPY, which fell from 137.32 to 135.70, also weighed on USD/JPY which finally broke out of the 50 point range around 98.50 to trade to lows of 97.88.

AUD, NZD, CAD and GBP all weakened in line with the EUR.

NYMEX crude was stable above $68 and gold bounced slightly but Asian stocks came under selling pressure with Taiwan falling over 3% and trading to a one-month low.

Treasury yields retreated slightly from the fresh highs made on Monday as the market squared up slightly ahead of the US $65 bln auction this week.

Comments out of Asia that its richest countries see no alternative to the dollar as a main reserve currency are 'concerted verbal intervention' to support the US currency, said Marc Ostwald of Monument Securities.

"The dollar selloff was threatening to turn into a rout and the realization hit that it's in no one's interest to have this instability now," Ostwald told NTKN.

JPY traded on a softer footing during the Asian afternoon after it responded to a series of weak Japanese releases, although there was one positive after industrial output posted its biggest monthly rise in April in 56 years, of 5.2%.

USD/JPY remained on the backfoot in the Asian morning amid general dollar weakness, but weak Japanese data and persistent speculative activity via the JPY crosses saw it make a gradual recovery to 96.75-80, where it last traded.

EUR/JPY held firm, trading close to 135.50 and topping at 135.80 -- an eight-week high -- with European equity markets looking to push higher and the USD legs underpinned amid dollar selling interest.

GBP/JPY extended its recent gains to peak at 155.90, its highest since November, with global recovery hopes encouraging pesistent interest for GBP on dips.

The dollar remained under pressure moving into the weekend, with both AUD and NZD extending trend highs at 0.7917 and 0.6288 respectively, and with USD/CAD revisiting the recent trend lows just under 1.1100.

The USD's bearish tone was partly a result of headlines that the South Korean Pension Fund was looking to diversify out of the dollar.

This followed a number of comments Thursday about the dollar, that BRIC nations would discuss the dollar dominance, and more warnings from PIMCO on the dollar as a reserve currency, that kept the buck under pressure.

However, sterling had only an inside day within Thursday's ranges and EUR once again failed to secure gains above 1.4000.

USD/JPY fell from 96.80 to 96.25 on exporter sales and the surprise 5.2% rise in industrial output.

Ahead of the weekend and month end however, trading was choppy.

Asian stocks were mostly higher except Seoul with lingering N. Korean fears weighing on the market.

Oil eased slightly under $65.00 after closing at the year's high on Thursday.

Treasury yields retreated slightly in Asia after soothing words from the Fed's Richard Fisher who noted central banks still showed demand for treasuries; comments which were b backed up by Fed custody holdings data which hit another record high.

The dollar remained under pressure in early Asia with GBP, AUD, NZD and CAD extending trend highs and reaching their highest levels since the autumn of 2008.

However, there were some signs of dollar resilience. Along with EUR/USD's recent inability to break above 1.40, USD was well bid against JPY during the session, holding above the 95.00 threshold.

Asian stock markets were broadly higher, many hitting multi-month highs after the US stock gains and strong US confidence data.

The market continues to eye the performance of US bond auctions to see whether foreign demand remains strong on the back of current USD weakness and higher bond yields.

The JPY gained ground during the Asian session, partly aided by the GDP number which though poor at -4% for Q1, was better than expectations of -4.2%.

JPY gains on the back of the data, and further EUR/JPY selling from Japanese life companies and model funds helped the push USD/JPY lower to 95.50 from opening levels around 96.22.

The USD also managed to gain slight ground in Asia due to the JPY cross selling that emerged on JPY strength with AUD, NZD and EUR all coming under pressure.

EUR/USD eased from Tokyo opening levels of 1.3650 to fall to 1.3584 both on the back of EUR/JPY sales but also some pressure on EUR/GBP as well.

Asian stock markets were mixed with the Nikkei up slightly on the GDP result but China pressured after the World Bank warned that China recovery hopes were premature.

July NYMEX crude futures remained over $60 despite increased warnings about rising oil supplies and inventory. Treasury yields were little changed from late NY levels.

Renewed risk appetite kept pressure on the USD in Asian trading with Asian stock markets taking the lead from US equity gains, and trading to multi-month highs. This saw EUR, AUD, NZD, CAD and GBP extend the gains these currencies made on Monday. EUR/USD rallied to highs of 1.3579, from morning lows of 1.3530 with Cable rising to 1.5355. USD/JPY consolidated however, trading a range of 96.13-96.62 with the move to session highs aimed at triggering stops above 96.50. US Treasury yields edged higher in response to the regional stock market gains. NYMEX crude remained near $59 while gold edged marginally lower. In Europe, the focus is on Germany's ZEW while the US calendar remains light, with just April housing starts on tap.

The JPY found brief support on the Moody's JGB ratings announcement, which unexpectedly upgraded its domestic currency bond rating from Aa3. However, the agency still lowered its rating for Japan's foreign currency bonds, which unifies the local and foreign JGBs at Aa2, and there has been limited market impact. Moody's also affirmed that Japanese bank ratings will not be affected. A Nikkei newspaper report had earlier caused speculation of a sovereign downgrade, which had supported USD/JPY earlier in the Tokyo session, though the speculation proved to be unfounded. USD/JPY has now settled around the 95.00 level after earlier making a near two-month low at 94.52 (before the rumours about Moody's started). The backdrop of rekindled risk caution has been supporting the JPY, while the rebound in Japanese consumer confidence, reported earlier, may have also helped the currency. In USD/JPY, a mix of sellers and stops in the 95.50-96.00 area, with buying interest noted from 94.50, with stops below. Ahead this week, Japan's Q1 GDP data on Wednesday is expected to reveal another sharp contraction.

JPY traded on a supportive footing, with the fallout in the euro and sterling fueling good long liquidation in the JPY crosses. EUR/JPY hit lows of 128.18 in Asia, although bargain hunting was noted on dips, which saw a period of gains in to the 128.80 area, but the overall tone was heavy after it traded from a 129.53 intra-day peak. GBP/JPY traded in to 145.50 and AUD/JPY moved in to the 70.50 area. The speculative market is showing concern over bank stress tests, with some negative press on the weekend. Apparently, the US Treasury and the financial regulators are clashing over how to disclose the results and how far the tests will go to test bank strength, which could be indicative of more defensive to come in FX. The market is not as jittery as it once was though and this was indicated by the fall in USD/JPY implied volatility, with one month contracts down to 14.90% in Asia, which was the lowest since September 12 2008. Elsewhere, option maturities continue to hamper USD/JPY, with strikes noted at 99.50 and 100.00, although the large interest at 101.45 today is too far away too cause problems. Technically, USD/JPY once again failed to sustain a move below the 200-day moving average at 98.78 today.

The dollar was under pressure in early Asian trading, weighed down by gains in the EUR, GBP and AUD as risk appetite improved in the wake of the Fed Beige Book and the strong triple digit gains on the DJIA. However, the currencies suffered a set-back with selling on JPY crosses emerging to weigh on USD/JPY after China's GDP at 6.1% fell short of expectations, reflecting the slowest growth in ten-years. AUD/USD, which had fallen just short of re-testing recent highs at 0.7316, dropped back to 0.7248. EUR/USD pulled back from 1.3269 to 1.3192 while Cable, which traded to 1.5070, descended to 1.4973. USD/JPY, which was capped at 99.52, dropped back to 98.97. Asian stocks which rallied strongly at the open, with the Nikkei up almost 3%, pared gains after the China GDP data with the Nikkei only holding on to gains of 0.50% in the afternoon, though Asian stocks remain positive overall. NYMEX crude rose but remained under $50 after the rise in inventories reported Wednesday in NY dealings. US Treasury yields were little changed. Of note was China's statement citing the recent moderation in reserve accumulation as a factor of EUR depreciation earlier this year, apparently attempting to assuage some press speculation that China was purchasing less forex reserves.

Unwinding of carry trades in response to renewed risk aversion was the dominant theme of the Asian session with reports of hedge funds being stopped out of recent JPY cross purchases, and with Japanese investor sales of EUR/JPY due to upcoming EUR bond redemptions adding to the JPY cross selling pressure. EUR/JPY fell from Asian highs of 131.50 to 130.33, and is well down from yesterday's Asian highs of 134.33. USD/JPY declined from morning highs of 99.14 to lows of 98.15. EUR/USD dropped from Asian opening levels around 1.3270 to lows of 1.3220. Asian stocks were broadly lower after the DJIA fall with the Nikkei also pressured by exporter losses in response to the stronger JPY. NYMEX crude remained under $50 and edged slightly lower on global demand concerns. Treasury yields remained low as well in the wake of the slide in US retail sales. As an aside to the session, Fiji devalued their currency by 20% amidst political turmoil.

The dollar generally remained under pressure in Asian trading despite some profit-taking in AUD and EUR that offered a slight reprieve to the USD weakness that emerged in NY on Monday. EUR/JPY sales by Japanese investors saw EUR/USD slip from morning highs of 1.3381 to 1.3306 before a bounce back to 1.3350 in the afternoon. Macro funds helped cap AUD at 0.7322 for a slide to 0.7271 before a bounce back to 0.7291. USD/JPY was weighed down by the EUR/JPY sales and a weak Nikkei, dropping from highs of 100.43 to 99.62. However, CAD rallied with USD/CAD falling form 1.2241 to 1.2183 while Cable extended gains ahead of the London open, rising to 1.4912 in response to a fresh slide in EUR/GBP to 0.8957 and recent lows. Flows rather than fundamentals were seen behind the currency moves. In regional developments, the MAS "re-centered" the SGD effectively allowing a 1.7% devaluation following forecasts that the Singapore economy could drop as much as 9% this year. North Korea abandoned nuclear talks and threatened to re-start its program but with little impact on the market. Asian stocks were mixed with the Nikkei dragged down by weak auto shares. NYMEX crude dropped under $50 in further reaction to the IEA forecasts of falling global demand.

JPY traded on an easier footing in early European trade as speculative names and short term funds were buyers of the JPY crosses. EUR/JPY traded out of the 132.50 area to hit 133.54 highs, which helped to lift USD/JPY to highs of 100.23. GBP/JPY also pushed higher and tested offers around the 148.00 level and AUD/JPY traded up to 71.60. Further JPY selling may be tempered by the Easter holidays and momentum is already lacking after the initial rise in liquidity over the European open. For the most part, larger funds and real money-backed accounts are sitting on the sidelines until normal trading resumes next week. The news over US bank stress tests was positive, but the Fed offered a very downbeat assessment of the economy in its "minutes", which still casts doubt over the longevity of the recent improvement in market sentiment. As we approach the weekend option expiries may draw an influence, with USD/JPY strikes still heavily congested around the 100.00 level, along with outstanding maturities at 99.50 and 100.50.

The USD and JPY buying trend continued as the renewed risk averse mood gained momentum. The fall in US stocks on Tuesday helped underpin the risk aversion, but was aided by the disappointing Alcoa results, with the EUR under particular selling pressure after the dire Irish budget and forecasts for Ireland growth to decline by over 7% this year. Asian stock markets declined 2-3% today, helping fuel the JPY cross sales and boosting the USD. Late afternoon comments from Fed's Fisher asserting that the EUR faces more problems than the USD sent the EUR to fresh session lows of 1.3166, after the EUR opened around 1.3275. USD/JPY fell from a spike high of 100.87, achieved during the Tokyo fix, to lows of 99.89 on the back of the cross sales. US Treasury yields edged lower on weaker stocks. Oil prices declined as well on the API data from Tuesday and demand concerns.

The dollar was holding a firmer tone in Asia, though gains were very moderate, with the overhang of the DJIA pullback on Monday and some underlying weakness in Asian stocks prompting some additional profit-taking in JPY crosses, that pushed EUR, GBP, AUD and NZD lower in morning trading. Data played a key in weakness for some currencies with the weak NZIER QSBO survey weighing on Kiwi, which dragged the AUD lower as well. USD/JPY dropped from 101.10 in early Tokyo to 100.24 on morning cross selling before consolidating in a 100.24-100.86 range with little impact from the BOJ decision to keep rates steady at 0.10%. AUD/USD failed on two tries to break under 0.7060 ahead of the RBA rate decision. The 25 bp rate cut to 3.00% from the central bank sent the AUD lower to 0.7045 before short-covering lifted the currency to highs of 0.7140. Oil prices held around $51 after the slide on Monday while gold saw a bounce of almost $6 after the strong losses Monday. Overall, price action is showing signs of consolidation of recent currency and JPY cross gains, particularly with a holiday-shortened week expected to dampen trading.

Once again, JPY cross buying was the focus in Asia, sending the dollar lower against most currencies except the JPY. US and foreign entities were said to be behind the buying in the wake of the DJIA close above 8,000 on Friday and as Asian stock markets rallied in response. The North Korean missile launch was shrugged off by the regional market who have become immune to North Korea's actions. USD/JPY rose to highs of 100.92 but option defense of 101.00 stalled a move higher. EUR/USD gapped from Friday's NY closing levels around 1.3485 to 1.3514 and proceeded to rally to highs of 1.3582 on the back of EUR/JPY gains. Asian stocks were all broadly higher today, with some such as South Korea and Taiwan testing 6 month highs. Crude futures rose above $53 on increased optimism but gold dropped further, slide $18 as stops were triggered, as risk appetite increased.

The dollar weakened against both the euro and sterling, despite reported comments from US Treasury secretary Tim Geithner stressing that a strong dollar was in everyone's interest. Geithner made the comments to China TV. Euro/dollar traded above 1.33, while cable plowed above the $1.46 to hit a session high of $1.4621, up one percent on the day.

The dollar lost ground against most currencies in Asia on Wednesday as risk appetite soared on the back of 3-5% gains on Asian stock markets. Equity markets saw positive signs in the US data and auto maker reports on Wednesday and went on a buying spree with DJIA futures making triple digit gains while the Nikkei was up over 4% and the Hang Seng over 5%. EUR/USD opened around 1.3240 and rallied to highs of 1.3294 despite the ECB rate decision looming with AUD, NZD, CAD and GBP all higher. USD/JPY was the exception to the easier dollar due to the broad-based buying of JPY crosses on the back of the stock gains. USD/JPY bounced off lows of 98.40 to highs of 98.88 but remained easily contained within the wide trading band seen post-Tankan on Wednesday. Traders in fact suggest USD/JPY may remain range-bound until the US jobs data on Friday.

USD/JPY and JPY crosses reversed almost all the losses made on Monday in Asia. Aiding the recovery was large USD/JPY and JPY cross buying at the Tokyo fix. In addition, initial gains in the Nikkei also supported the rise with the Nikkei bolstered by promises of news of more Japanese government stimulus measures today and a Kyodo report that the LDP will set up an entity to purchase stocks with public funds. In fact, talk of price-keeping-operations circulated earlier in the session. USD/JPY, which traded at lows under 96.00 in Asia Monday, opened in Tokyo around 97.35/40 and rallied to highs of 98.44. EUR/JPY which traded to lows of 126.41 on Monday opened at 128.40 and rallied to highs of 130.65. EUR/USD was supported by the cross activity, rising from 1.3185 at the Tokyo open to highs of 1.3274. Other currencies such as AUD, NZD, GBP and CAD followed a similar pattern to the EUR. Asian stocks were decidedly mixed today and even the Nikkei, after the morning rally, dropped 1% by the afternoon. Oil bounced back above $49 after the strong sell-off in NY on Monday while gold also corrected higher, rising over $2 to $918.40, also retracing part of the losses from Monday. US Treasury yields were flat to mildly firmer.

The dollar made broad gains in Asia, except against the JPY which rallied as well as heightened risk aversion fueled broad-based selling on JPY crosses on the day. The underlying tone of risk aversion was evident from the morning with Asian stocks and US stock futures already under pressure but losses in equities accelerated on news that the US Auto Task Force reported that bankruptcy was an option for GM and Chrysler. Some Asian stock markets fell over 3% and triple digit losses were seen on DJIA futures. USD/JPY fell form the morning highs of 98.31 to lows of 97.06 as a result and JPY crosses are at risk of breaking the uptrends that have supported those crosses for much of Q1. Expectations for the G20 moderating dramatically on numerous weekend reports showing a lack of consensus. US treasury yields declined on safe haven flows in the wake of the stock market fall. The EUR/USD was under pressure from the cross plays, dropping from morning highs of 1.3285 to lows of 1.3195 ahead of the London open.

Range trading was the theme for the Asian session for the major currencies but some of the regional currencies strongly outperformed with Kiwi trading to the highest levels since January and with the Korean won also the highest since January. The HKMA was forced once again to intervene to cap HKD gains and has been intervening since Friday to maintain the peg. USD/JPY meanwhile is seen mostly holding around 97-98 into the end of the week with option plays helping to contain prices ahead of the fiscal year end in Japan. The range today was limited to 97.59-97.92 since the NY open. The EUR/USD is seen in a 1.34-1.37 range with price action in Asia contained around 1.3539-1.3618 during the session. Asian stock markets were broadly higher today after the positive US durable goods data and positive gains in the DJIA. Oil bounced back above $53, a level held in Asian much of this week and gold eased, paring only part of the gains made in New York trading. Of note was the news that the Obama administration will announce stricter supervision for Wall Street later today.

Profit-taking in JPY crosses dominated the Asian session after the fall in the DJIA and subsequent weakness in the Nikkei on Wednesday. USD/JPY, which spiked to highs of 98.35 early in Tokyo trading, dropped to lows of 97.42 by the afternoon on the cross sales. The move down mirrored a fall in the EUR/JPY from morning highs of 132.59 to lows of 131.00. Currencies such as AUD, EUR and GBP consolidated during Asian trading after the slide in the NY session, but with bounces capped by the JPY cross sales. AUD/USD eased from 0.6995 but found bids ahead of 0.6940 while EUR traded mostly between 1.3440-1.3500. Cable was caught in a range of 1.4639-1.4718 during the session. In focus were the comments from PBOC adviser Fan Gang who said that China's economy had touched bottom. Japan Fin Min Yosano says Japan will not change the policy of investing in US Treasuries. Asian stock markets were mixed with profit-taking capping gains on the Nikkei but good strength was seen in stocks in Taiwan, Seoul and Australia on signs of renewed fund demand. US treasury yields edged higher on the optimistic note from China that the economy had reached the bottom. Gold bounced after sharp losses in NY while oil eased but remained above $53.

JPY cross buying was the dominant flow of the Asian session as risk appetite rallied on the back of Asian stock market gains after the news that US Treasury's Geithner would announce a toxic asset purchase plan later Monday, aiming to take bad debts of US bank balance sheets. DJIA futures posted triple digit gains as well. This saw the USD stronger against the JPY which rallied from 95.65 lows to highs of 96.55. However, the USD was broadly weaker against other currencies such as AUD, CAD, NZD, GBP and EUR on the back of the cross plays. EUR/JPY traded to the highest levels since October, rising to 131.97 while other JPY crosses look set to test the year's highs, suggesting a bottom has been formed in the JPY crosses. EUR/USD gapped from a NY close of 1.3580 to open around 1.3660 but could not rise above 1.3700, stalling at 1.3684 and still well shy of highs on Friday. Many Asian stock markets were up 2% or more and oil and copper prices rallied along with the rise in risk appetite. Treasury yields also rallied on the news, which may provide some relief for the USD.

The Asian session saw volatile trade, with the market dealing with the surprise bond purchase plan from the Fed. Overall, the dollar remained on the backfoot after sliding during Wednesday's NY afternoon session. There were good periods of corrective action, which was heavily influenced by significant flows via USD/JPY and the JPY crosses, which according to sources were order driven and related to fiscal year-end hedging. For the most part, Asian equities moved higher, with the exception of the Nikkei, which struggled as a strong JPY hurt exporter stocks. Local players applauded the decision by the BoJ and the Fed, but price action remained nervous nevertheless as the G10 currencies broke their recent ranges.

The Asian market continued where Monday's NY session left off, with equity markets continuing their advance, which encouraged appetite for risky assets. The dollar traded on an easier footing and was followed by losses in JPY and CHF. EUR/USD traded to a 1.3032 highs before trading back in to 1.2980 as one investment name pushed through a decent sell order. However, the tone is expected to remain supportive, with the euro crosses underpinned. USD/JPY extended its recent gains and traded as high as 98.85 in to the Tokyo close amid good Japanese fund demand, along with leverage account activity. The commodity bloc currencies were stable, with AUD/USD holding close to the 0.6600 area, but still looking toppish after it pulled back from 0.6637 on Monday.

Consolidation was the theme in Asia after the sharp moves in the market Thursday that saw the USD lose ground against EUR, AUD, CAD, NZD and GBP in NY trading. The SNB intervention to weaken the CHF, along with strong gains in US stocks, contributed to fresh demand in carry trades and renewed risk appetite that weighed on the USD, JPY and CHF. USD/JPY, which had rallied in early NY to highs of 98.52, consolidated in Asia mostly between 97.13-98.06. EUR/USD consolidated in a tighter range of 1.2892-1.2935, underpinned by further gains in EUR/CHF which saw the cross trade to 1.5398 and the highest levels since December. EUR/JPY consolidated above 126.00 most of the session, and the highest levels since early January and this also underpinned the EUR. Cable, despite the rally in late NY, could not break above 1.4000, pulling back to lows of 1.3879 as a result as traders cut longs. A key factor for the Asian session was the speech by China's Premier Wen who gave no more concrete stimulus measures though promised more help, but stating that reaching an 8% growth target would be difficult. He also said that the decisions on the CNY would only be made by China and that he was worried about China's reserve assets in the US. This last comment may have helped underpin US treasury yields, but gains were not extraordinary.

The dollar gained ground in the Asian session in the wake of the news that China's trade surplus had contracted to only $4.84 bln and well below expectations of a $27.3 bln. The news was seen reflected the sharp drop in global demand but also indicated a sharp drop in need from China for raw materials to produce exports. As a result, commodity currencies such as AUD, NZD and CAD were sold as were AUD/JPY and CAD/JPY. EUR and GBP were also sold as a result, also helping to lift the dollar. The news from China comes in the wake of various reports from around the globe of the drop in port traffic and air cargo volume as global trade collapses. The dollar moves were still within the recent ranges but provided a setback for attempts by the EUR/USD in particular to rally. EUR/USD, which traded to highs of 1.2736 early in the session, fell to 1.2632. GBP/USD dropped from highs of 1.3807 to lows of 1.3670. USD/JPY was contained in a range 98.85 down to 98.27. Of note later today will be the meeting with Treasury's Geithner and Chinese Foreign Minister Yang Hiechi, with China's purchase of treasurys and China's currency expected to be topics under discussion. Asian stocks were sharply higher following US stock gains but stocks in Shanghai pared gains and turned negative after the trade data from China was released. Oil held under $46 after the losses in NY and the fall in demand in China is likely to help temper oil gains. Gold remained under $900 after losing its safe haven status as stocks bounced.

The dollar came under initial pressure at the Asian open, apparently driven more by attempts to trigger stops rather than any of the developments over the weekend. But the market was unable to sustain the dollar weakness, and the dollar recovered ground in the afternoon, pushing to session highs against AUD, EUR, NZD, CHF and GBP. Overall however, trading was said to be very subdued. EUR/USD which gapped higher at the open at 1.2675, traded up to 1.2727 before pulling back to 1.2647 lows. GBP/USD traded up to highs of 1.4182 before falling back to 1.4092. USD/JPY traded mostly within a tight range of 98.00-98.50. US Treasury yields were little changed in Asian dealings. Most Asian stock markets were lower on the day with the ongoing theme of the credit crisis, and slowing global growth weighing on investor demand.

After the dollar lost steady ground in NY on Wednesday, the dollar gained back ground in Asia on position-squaring with traders looking to pare positions ahead to the key ECB and BOE decisions later on Thursday. Some of the euphoria over the possible additional Chinese stimulus measures faded as well after Premier Wen Jiabao failed to announce any new measures at the National People's Conference in Beijing. EUR/USD, which hit highs of 1.2664 in early Asia, dropped back to lows of 1.2583. GBP/USD pulled back from highs near 1.4200 to 1.4130. AUD, which traded up to 0.6527, dropped back to 0.6413, also weighed down by weak data with Kiwi retreating as well. USD/JPY, which bucked the weaker USD trend, consolidated Wednesday's gains between 99.00-99.50. Asian stocks were decidedly mixed, with the Nikkei up on JPY weakness but stocks in Hong Kong and China down on the lack of definitive new stimulus measures. Oil consolidated Wednesday's gains above $45 with gold bouncing $7 after eight straight days of declines in NY.

The dollar extended gains in very early Asia but the rally was thwarted first by the fact that USD gains could not break out of recent range lows for EUR and AUD and then by the decision by the RBA to keep rates steady at 3.25%. The decision caught much of the market by surprise, triggering AUD buying with NZD, EUR, GBP, CHF and CAD all piggy-backing off the AUD rally. Despite the RBA move, the BoC, ECB and BOE are all seen cutting rates this week however which should still help to underpin overall USD strength. A UD/USD rallied from lows of 0.6287 to highs of 0.6417 with risk to move back to the top of the recent range around 0.6550-0.6600. EUR/USD rallied from lows of 1.2538 to highs of 1.2676 withoption defense ahead of 1.2500 is still acting as firm support for EUR/USD, as is strong demand for EUR/JPY around 122.00. USD/JPY bounced off lows of 97.00 to rise to 97.61 but is still seen in a broad 96.80-98.20 range that has contained dealings since Friday. Asian stock markets were able to pare losses, aided by a good bounce in DJIA stock futures. NYMEX crude consolidated above $40 after a 10% loss on Monday while Comex gold futures dropped $7.20 to $931.80, still under pressure after the failure to hold gains above $1000 in February.

A recovery in the JPY was the focus for the Asian session with JPY gaining ground against the USD and on the crosses. Two catalysts were noted for the move, including the better-than-expected Japanese unemployment results at 4.1% and the lack of further Japanese corporate month-end USD buying which had been rumored, but failed to appear. USD/JPY fell from early Asian highs of 98.61 to lows of 97.32. EUR/JPY dropped from early highs around 125.50 to lows of 123.73. The cross play dragged EUR/USD down from levels around 1.2747 to lows of 1.2689 before EUR bounced, only reconfirming the recent range that has held around 1.2700-1.2800 over the last couple of days. AUD and NZD were dragged down on the session on JPY cross selling but also remained in recent ranges. GBP/USD mostly consolidated around 1.4253-1.4309 in choppy trading. Asian stock markets were mixed with Australia flat, the Nikkei, South Korea and Taiwan higher, while stocks in Shanghai slumped. Oil prices eased, dropping under $45 for the Nymex Apr contracts. Gold fell, extending the week long decline after failing to sustain the highs above $1,000 traded a week ago. The WSJ reported on a deal between Citi and the government over converting the government holdings to stocks but this appeared to have little currency impact, and DJIA futures remained slightly negative on the news. USD selling intervention was seen on both the INR and the KRW with the KRW reaching a an 11-year low today.

The JPY weakening trend continued in Asian trading with USD/JPY rising above 97.00 following the release of Japanese trade data which showed a record drop in exports of 45.7% year-on-year. Option-related stops were triggered in the move up which tested highs of 97.33. AUD, NZD, GBP and EUR all consolidated gains that were made in late NY, in response to the strong close of the US stock market. EUR/USD consolidated between 1.2837-77 much of the morning but then dropped back toward 1.2800 mid-session with euro zone economic concerns and Eastern European woes still lingering. EUR/JPY attempted and failed to take out option-related stops above 125.00 but found solid support on dips under 124.00. Asian stock markets were mixed with the Nikkei rising as exporters rallied on the weak JPY but stocks in China and Australia were weaker. Oil prices held above $40 early in the session until the Japanese data showed a drop in Japan's oil imports for the third month in a row, which sent oil back under $40. Comex Mar gold contracts fell $5.90, with gold extending losses after the failure to hold above $1,000. Further signs of regional economic weakness emerged with HK Q4 GDP dropping -2.0% for the quarter.

The dollar extended the losses that emerged late Friday in NY, with USD weakness in Asia fueled by the WSH report that the US government was mulling taking up to a 40% stake in Citigroup. The late sell-off in the USD Friday was tied to only one very large USD/CHF selling order that then reverberated through the rest of the currency pairs. Stops above Friday's highs for currencies such as GBP, AUD and EUR, helped extend the gains in those currencies and undermine the USD further. Some saw the news as USD negative yet US stock futures bounced on the news, helping underpin Asian stock markets, stalling deeper losses in the Australian and Japanese stocks but helping lifting stock in S. Korea and Hong Kong. The USD sell-off lost momentum however and further followthrough selling is questioned with more weak anecdotal economic reports out of Europe and the UK on the weekend including job losses in the UK for RBS and Vodafone. Mostly, the USD move has just returned many currency pairs back to the middle of their recent trading ranges, thwarting a new trend and dampening the hopes of the analysts that were looking for a topside breakin the USD index above last November's highs. Gold dropped over $10 on the Citi news and oil held above $40, posting minor gains.

The USD surged across the board in Asia, even losing its usual nexus with the JPY that typically benefitted from USD strength. The catalyst for the USD rise was the linger fears over European bank exposures to Eastern Europe, particularly in the wake of the sharp fall in the zloty on Monday. Just after the Tokyo open, Moody's issued a report warning on bank exposures to Eastern European debt which sent the EUR sharply lower from opening levels of 1.2800 to lows of 1.2632 with stops at 1.2750 and 1.2700 triggered in the move down. The EUR move weighed on GBP, CAD, NZD, CHF, AUD and JPY as well. USD/JPY, which opened around 91.70, rallied sharply to highs of 92.76, though the lingering impact of the sharply weaker GDP report from Monday also served to undermine the JPY. Broad jitters over financials emerged as concerns over the Lloyds exposure to HBOS lingered and this weighed on financial and banking stocks in the region sending all the stock markets lower. The Korean stock market came under particularly pressure, dropping 4% as banking stocks fell and with the KRW traded to the lowest levels since December 5th. South Korean officials attempted to dispel talk of a March foreign currency crisis that undermined the currency and stocks. Oil dropped under $37 on global demand fears, ignoring supply threats from Russia who warned it could build up inventory to support prices. US Treasury yields fell on safe haven flows to the USD but also in reaction to the stock slump with DJIA futures posting triple digit losses, down 102 pts.

Short-covering was the theme of the Asian session, with the late bounce in US stocks, partly in response to the reports of a US mortgage loan modification plan, helping trigger the first wave of currency and JPY cross gains which set the theme for the Asian session. As Asian stock markets rallied in response to the US market move, the forex market focused on stops to fuel gains in EUR/USD and EUR/JPY in particular. Japanese pension funds and model funds were said to be squaring shorts, with the G-7 looming on the weekend and adding to the buybacks. Traders also point to the US holiday on Monday as a reason to square up positions. EUR/USD, which saw a low of 1.2727 in late NY, opened in Asia around 1.2868 and fueled by stops, many of which were on EUR/JPY, rallied to highs of 1.2943. USD/JPY which opened in Tokyo around the session lows of 90.54, rallied to highs of 91.27 before retreating. Oil bounced on position-squaring in Asia but remained weak under $35/brl while gold eased on profit-taking. Asian stock markets were all broadly higher on the day.

A stronger USD and JPY fueled by renewed risk aversion dominated the Asian session as the AUD, NZD, CAD, EUR and GBP came under steady selling pressure. Weak data in Europe and the US on Thursday coupled with the slide in US stocks was followed by a plethora of bad releases in Asia with NZ building consents at 22-year lows, Australian credit contracting for the first time since 1992 and a record plunge in Japanese industrial production. USD/JPY, which began the Sydney session above 90.00 dropped to lows of 89.20 with reports now of exporters chasing USD/JPY lower. EUR/USD which was trading around 1.2935 at the Tokyo open, after a plunge overnight, dropped to lows of 1.2877. Cable dipped under 1.4200, down from late NY levels around 1.4330 weighed down by the fall in the GfK consumer confidence. Kiwi hit six year lows in today's sell-off. Asian stock markets were mostly lower led by the Nikkei on reports of larger losses for Toyota and bad news from Nintendo and Toshiba. Oil remained under $42 with gold extending gains slightly, above $906 on safe haven flows.

The USD eased during the Asian session as did JPY on the crosses on renewed risk appetite with the market focusing on hopes for the passage of the US $825bln stimulus package in the House on Wednesday. In addition, hopes for more liquidity measures by the Fed later today, coupled with the reports that the FDIC may be tapped to run a "Bad Bank" were all encouraging for the markets. In addition, the Senate Fiance Committee passed stimulus measures totaling $522 bln, including tax cuts, adding to the positive mood. Stocks in Korea and Japan rallied and the DJIA futures posted triple digit gains. JPY crosses were also supported by talk of new Japanese investment funds that were targeting the USD and EUR and other foreign currencies. Still, despite JPY weakness on the crosses, the crosses remain under recent highs and USD/JPY remained within 88-90, trading a range of 88.92-89.47. EUR/USD fell from 1.3250 highs near the open to 1.3171, only to recover to 1.3268 but was hampered by EUR/JPY sales at 118.40 and a drop in EUR/GBP to 0.9270. AUD and Kiwi were slightly firmer but below recent highs while USD/CAD pivoted around 1.2280 much of the session until a late slide to 1.2257. Gold, oil and base metals were soft.

The dollar eased against most currencies in Asian trading, with a severe short-squeeze emerging on EUR, AUD, NZD and GBP. Traders say that stops and thin trading conditions exacerbated the move higher. Two reports were said to have fostered the heightened risk appetite, in defiance of broadly negative fundamentals and weak Asian stocks. Traders attributed gains to a report that Treasury-nominee would act quickly to restructure TARP or to a WSJ report that private equity is touting their own private stimulus measures. The shift in sentiment was sharp with EUR, AUD, GBP, NZD and USD/CAD all gapping higher at the Tokyo open. EUR/USD rallied from lows of 1.2856 in early Asia to highs of 1.3019. GBP/USD rallied from 1.3860 to 1.4023, while AUD/USD rallied from lows of 0.6458 to highs of 0.6578. Kiwi rallied from 0.5166 to highs of 0.5303. USD/JPY, while supported by a rise in crosses, was contained by today's large 90.00 option strike that kept price action near that level. The move up in currencies and JPY crosses defied broadly weaker Asian stock markets. Oil was marginally firmer, above $41 for March contracts while gold was down almost $3 to $852.30 with base metals falling in Shanghai.

The dollar came under steady selling pressure as currencies posted steady strong gains in Asia, along with a rise in JPY crosses. Increased risk appetite bolstered the currencies with factors seen fostering the increased risk appetite including the Senate approval of the $350 bln TARP tranche, the House Democrats $825 stimulus package, the positive close on Wall Street and subsequent rally in the Nikkei. The news late in the session of the bail-out support for the BofA Merrill purchase aided sentiment as well as DJIA futures rose on the news, treasury yields extending gains and Asian stocks extending their rally. EUR/USD, which fell to a low of 1.3025 in NY trading, had opened in Asia around 1.3100 and traded as high as 1.3254. USD/JPY, on the back of the cross flows, recovered from the lows of 88.49 on Thursday, to open in Asia around 90.00 and trade to highs of 90.57. Cable traded to highs of 1.4849 on short-covering with strong gains in AUD, CAD and NZD ignoring fairly downbeat commodity developments from overnight trading. Nymex crude remained soft in Asia, at $35.50, gaining only 10 cents. Gold rallied on the back of the weaker USD, rising $13.50 to trade to $820.80. Another sign of renewed risk appetite was the biggest daily gain in the KRW in almost three weeks.

The dollar reversed the gains made on Tuesday with broad-based short-covering emerging in EUR/USD and EUR/JPY that led broader USD losses and JPY cross gains through the session. Traders were said to be cutting EUR/USD and EUR/JPY positions ahead of the ECB decision on Thursday and increased risk appetite was noted as well with signs of credit market conditions easing after the fall in Libor to five-and-a-half month lows and with a sharp rise in corporate issuance noted. EUR/USD rallied from NY lows of 1.3140 to highs of 1.3313. EUR/JPY rallied from 117.13 in late NY to 119.50. AUD/USD completely reversed Tuesday's decline with stop-loss buying on both AUD/USD and AUD-JPY. GBP/USD managed to rally to highs of 1.4615 with GBP/JPY buying noted from the late NY session. Early European desks helped fuel the broad trend in afternoon Asian trading as the USD traded to its lows. Asian stocks were mostly higher, though many indexes had trouble sustaining gains. NYMEX crude futures rose over $1 to $38.85 on OPEC supply threats and cold US weather though the USD weakness was seen aiding gains, and the USD retreat helped gold rise over $6 to $826.80. Copper and base metals firmed during Asian trading as well.

JPY is supported by broad based deleveraging. Broadly softer European equity markets pushed USD/JPY down to early European lows of 89.01. The JPY crosses also maintained a soft tone, with EUR/JPY trading as low as 117.71 before euro short covering forced a moderate rebound in thin trade. Meanwhile, GBP/JPY fell in tandem to hit 131.09 lows and commodity bloc currencies came under pressure on global recessionary fears and heavy fund liquidation, which pushed AUD/JPY down to 59.83 and NZD/JPY triggered good sized stops under 50.00 to hit 49.45 lows. The recent JPY buying saw a fresh warning overnight from Japanese finance minister Nakagawa on currency moves and may have limited further buying. However, Japanese real money interest for JPY may be persistent in the coming sessions amid large eurozone and US bond coupon and redemption payments. USD/JPY eyes stops under 88.80, but bids are layered back in to 88.50. Meanwhile, EUR/JPY could target 117.00 today, where large option strikes are noted.

The dollar gapped higher at the Asian open on renewed risk aversion and global growth concerns in the wake of the US job loss report on Friday. However, follow-through on currencies such as GBP/USD and EUR/USD was limited with trading thin due to the absence of Tokyo for a national holiday. EUR/USD fell from highs of 1.3475 to lows of 1.3373 and pivoted around 1.3400 much of the session with expectations of an ECB rate cut this week weighing on the currency. Cable opened at 1.5132, down from the NY close of 1.5150, and fell to lows of 1.5053 before pivoting around 1.5100 but remaining heavy. Dollar bloc currencies, AUD, NZD & CAD were under particular pressure, with AUD leading the move lower after gapping lower under 0.7000 at the open and continuing to fall to 0.6899. Asian stock markets were broadly lower, except China which was bolstered by government promises to speed up stimulus measures. Oil and gold were soft on global growth concerns.

The dollar continued to add to gains in Asia after recovering ground in NY on Wednesday. The fall in US stocks and subsequent losses in Asian stock markets fueled risk aversion, keeping pressure on JPY crosses and weighing on currencies such as AUD, NZD and GBP. AUD & NZD also succumbed to the pressure of lower commodities after the CRB slide over 3% Wednesday and the 12.2% slide in oil and fall in gold prices. Oil saw little change in Asian trading though gold bounced in a correction but base metals were broadly lower. USD/JPY was pressured by the fall in crosses as the Nikkei dropped 3.93%. The weak US Monster jobs index at 131 continued to fuel fears over US employment and kept USD/JPY heavy too with a fall to 92.38 from morning highs of 92.93. EUR/USD fell to lows of 1.3559 but recovered to 1.3635 on an FT report suggesting the ECB may not cut rates and a NY Times report that China is losing interest in US debt.

The dollar extended its losses in Asia in the wake of the Fed easing action on Tuesday, led by JPY gains which hit fresh 13-yr highs of 88.23 after Japanese Fin Min Nakagawa downplayed any chance of intervention early in the session. As a result, the USD lost ground against all major currencies with AUD rising to highs of 0.7025, EUR extending gains to 1.4192. GBP/USD rising to 1.5725 and USD/CAD falling to 1.1955. The session was dominated by Japanese official jaw-boning with some clearly increasing pressure on the BOJ to act on rates in the wake of the Fed action, and others going out of their way to emphasize the BOJ independence and the fact that further BOJ action is unlikely to impact corporate liquidity or the currency. Even Nakagawa was forced to back track on his currency comments as Japanese officials' concern over JPY gains increase. Oil was firmer as was gold and base metals on the Fed stimulus measures with oil prices somewhat bolstered by the threats of an OPEC production cut. Asian stock markets were mixed with the Nikkei weighed down by exporters on JPY gains and the speculation, which became truth, that Honda was paring its outlook.

The EUR/USD traded to two-month highs of 1.3736 in Asia,underpinned by expectations of a rate cut from the FOMC later Tuesday and by dovish comments from BOJ Governor Shirakawa which points to monetary policy action by the BOJ later this week. Kiwi outperformed on the session as well, rising to highs of 0.5595 driven by AUD/NZD sales. However, other currencies saw more subdued action with GBP and AUD having rallied on Monday, already pricing in the FOMC rate cut expectations and with AUD gains capped by weaker commodity prices and the announcement of layoffs by mining companies. USD/JPY trading remain contained between 90.30-65 despite very dovish comments by BOJ Governor Shirakawa which raises the chance for action by the BOJ this week to help ease monetary policy with Shirakawa's comments sending 2-yr JGB yields to the lowest levels since January. Asian stock markets were flat to weaker in the wake of the DJIA decline overnight. US treasury yields were soft on the back of the JGB moves and in anticipation of the Fed rate cut. Oil prices were under $45 as weak demand offset the threat of OPEC supply cuts with gold slightly lower after copper and aluminum futures prices declined limit down in Shanghai trading.

The Hong Kong Monetary Authority (HKMA) continued to pump money into the currency market to halt the Hong Kong dollar's appreciation. The HKMA injected two rounds of US$300 million on Thursday morning to try to keep the currency within its pegged trading band. The HK dollar was trading at 7.75 to the US dollar before the most recent injections, and at 0711 GMT, it is still hovering around the upper limit of its pegged dollar trading band.

JPY cross trades dominated the market moves as risk appetite emerged after the record rally in the DJIA and in Asia, as the Nikkei rose over 13%. The JPY cross demand saw USD weaken against GBP, EUR, AUD, NZD and CAD but rally against the USD/JPY. EUR/USD rallied from NY lows under 1.3500 to highs of 1.3692 in Asia. USD/JPY rallied from lows near 100.00 in New York to highs of 103.06 before pulling back to 102.15. EUR/JPY rallied from NY lows near 136.00 to highs of 141.04 before easing to 139.92 on profit-taking. US treasury yields gapped sharply higher after the closure of the US and Japan credit markets on Monday with ten-yr yields the highest since early August. Nymex oil continued to rally after 4.5% gains in NY, rising above $83.00 a barrel with broad-based gains in other commodities such as copper, with copper rising over 6% at the open.

The US dollar is broadly firmer in Asia, except against USD/JPY with the sharp 10% fall in the Nikkei keeping USD/JPY and JPY crosses under pressure. AUD has just traded to session lows of 0.6545 with USD/CAD at session highs of 1.1643 and the highest since Feb 2007. Broad selling in commodities in order to raise cash, has seen some metal prices fall 10% today, with oil down $4, keeping pressure on commodity currencies. GBP/USD hit a five year low, dropping to 1.6793, with the EUR/USD sliding to 1.3509 after being consistently sold off on any rally above 1.3600 this session. NZD/USD was heavy, but found support around 0.5900 and both NZD and AUD managed to stay above recent lows, despite the sell-off in CAD and Sterling. USD/JPY hit lows of 97.90 early in the Asian session on Nikkei losses but recovered to 99.67, before trading back under 99.00 in the afternoon. Investors were scrambling to raise cash with the unusual result of an aggressive sell-off in JGBs. Similarly, cash demand coupled with a slowing global outlook and reports of a slowdown in China, saw base metals fall up to 10% with copper down 9% and Nickel at a three-year low. Oil prices fell over $4 a barrel to $82.34. No reaction immediately emerged to the report that the US was considering temporarily backing all US bank deposits. Liquidity remained at a premium with overnight and three-month USD rates around 4-7%. Asian currencies were under pressure, prompting intervention on the IDR, INR and KRW. Singapore's MAS effectively eased policy for the first time in five years, adopting a zero-appreciation for the SGD trade-weighted basket.

The USD consolidated much of the morning session, showing signs of stability for the first time days, though fissures continued to emerge in the global markets. The KRW traded to the its lowest levels since 1998, despite a fund injection of $3 bln by Oaktree. The Nikkei slumped 8% after reports in the Japanese press that Toyota would cut its earnings outlook by 40% on the global slowdown. After opening limit down, asian metal markets attracted some bargain hunting, which along with range trading on currencies early in the session, gave hopes for some signs of normality. A strong bounce in EUR and GBP was seen in the afternoon on Asian buying which triggered some stops in the short-squeeze, though gains were exacerbated by liquidity, say dealers. However, the rally was quickly stymied as the Nikkei tumbled, weighing on JPY crosses and fueling renewed risk aversion. USD/JPY which had held 101.10-75 all morning, slumped to session lows of 100.65, on the cross sales. Indonesia suspended stock trading in the afternoon. AUD/USD traded to fresh lows since 2004 of 0.6805 while NZD/USD hit new trend lows of 0.6120 and the lowest since 2006.