• Treasury Secretary Geithner: Can’t devalue way to competitiveness
  • Japan’s August wages +0.4% YoY
  • FinMin Noda: Comments on China and South Korea were misunderstood
  • World Bank raises East Asian GDP forecast
  • RBA releases latest meeting minutes
  • Regional bourses mixed, Gold steady at $1370/oz

There was a volatile opening to the session as comments from Tim Geithner sent the USD higher after Fed comments during the NY session had weakened the greenback. EUR/USD fell from 1.3980 to 1.3920 before steadying. The pair then rallied through the Asian open back towards 1.4000 but was unable to hold onto the gains and has fallen back to its lows as the session ends. Ranges: EUR/USD 1.3917/1.4003, EUR/CHF 1.3362/1.3417

AUD/USD also caught a bid tone early as the market prepared itself for expected hawkish comments from the RBA meeting minutes. The AUD/USD dutifully rallied but was also unable to maintain gains towards .9950 and it also closes on its session lows. Ranges: .9866/.9946

Cable has followed the EUR/USD lead, slightly lagging as usual amid tight cross movements. Ranges: 1.5866/1.5940, EUR/GBP .8761/87

USD/JPY has once again had a very quiet range 81.15/40 and the market was unable to generate momentum to challenge stops waiting either side of 80.70/81.70. EUR/JPY range 113.11/63