The risk-aversion trades of recent days started to get unwound overnight with firstly the AUD and NZD rallying during Asian trade and this was followed by a sell-off in Gold and a rally in EUR/CHF. I don’t think we are witnessing a major reversal of sentiment, more of a readjustment in over extended markets.
I’m expecting another quiet session here in Asia. The Japanese PM Kan is expected to resign this week and that may take politicians focus away from intervening in FX markets, especially as FinMin Noda is one of the candidates for the top job. Not much on the economic-data front either so we will rely on news events and equity markets for some intraday volatility.
Good luck today.