• Chinese press: No need for Q1 rate cut
  • China’s house prices slide lower
  • Australian Westpac consumer sentiment +2.4%
  • Japanese and UK FinMins meet; discuss IMF funding, Volcker rule and EZ debt crisis
  • Japan’s industrial output revised to -2.7% in November
  • NYT: Greek PM may use law to force creditors to take losses
  • Other reports suggest that a deal with IIF is close
  • Nikkei +1.4% on stop-loss technical buying; other regional bourses +0.25% on average
  • Gold $1653/oz; Oil $101.40/bbl

More of the same short-covering in Asia, but to a much lesser degree compared with yesterday.

EUR/USD opened near 1.2740 and finishes the session near the upper end of a 1.2732/87 range. Some conflicting press reports on the status of Greek negotiations on private debt but overall its been another case of modest short-covering although no new ground has been broken today.

AUD/USD has been choppy with the AUD initially losing ground on the crosses. GBP/AUD posted a 27-year low overnight just above 1.4700 and some profit taking was noted. AUD demand from asset managers remains strong although there was no market-chasing today, unlike yesterday. Ranges: 1.0367/1.0404

USD/JPY 76.65/84; cable 1.5326/59; EUR/CHF 1.2086/1.2101