- FX market looked to equities for lead; they fell early, recovered, but fell again
- Japan FinMin Azumi opposed to large foreign bond buying
- Ratings firm affirm US ratings despite Super committee failure
- China central bank adviser: Unlikely to loosen policy in 2012
- Markets pricing in lower Australian rates in 2012
Fairly quiet again in Asia and unusually it was USD/JPY which caused some excitement. The JPY crosses did edge higher in early trade and then there was some confusion after the Azumi comments, which some took to meaning that more intervention was imminent. USD/JPY spiked to 77.33 before settling back down again once his comments were read closely. The low on the day was 76.84.
EUR/USD got a lift from early EUR/JPY buying but was unable to sustain gains above 1.3500 and has slipped lower in afternoon trade. Range 1.3468/1.3508.
AUD/USD stalled again near .9825 but bounces have been limited and Cable also stalled at technical support, the overnight low at 1.5615.