Asian central banks remain dip buyers in commodity currencies, traders say, and they are getting fresh weakness to buy as the afternoon unfolds.
AUD/JPY selling is quite acute this afternoon as Chinese liquidity tightening and a newly proposed Aussie mining tax inject uncertainty into a popular carry trade.
USD/CAD is off session highs after a round of sales from a North Asian central bank near 1.0525 session highs. Russia announced yesterday they had begun to add CAD to their reserves. If they liked CAD yesterday, they must LOVE it today.
AUD is at 0.9050 after trading down to 0.9025 a short while ago.
Oil is coming under heavy pressure this afternonn, down $1.75, below $76.00 while the CRB is down 0.9%.
