The levels to watch are $1050 and $1150 and a clean break either side will probably usher in the next big move.

No clue what to blame it all on, though it does suggest risk aversion.

The ultimate trade in the FX markets has been to be long the AUD and other commodity currencies against the ‘old-economy’ currencies like the EUR, GBP and the USD. They say that a currency pair always looks it’s absolute worst and most bearish right at the bottom. I must say that GBP/AUD looked very very bad yesterday. I wonder?

UPDATE: We’re hearing speculation from AUD/USD traders that there has been central bank selling in gold in the last hour…

AUD/USD dipped briefly below the 0.9060 level where the 100-day moving average lies. Small stops lie below that level while larger ones are perched in the 0.8935/40 area, traders say.

Risk aversion has picked up this morning, European stocks lower, oil off over a buck and gold lower. Fitch’s various prognostications (see above) hardly helped matters.  USD and especially JPY the beneficiaries.  JPY also aided by ongoing reports of fiscal year end repatriation flows.

EUR/USD started around 1.3615. Dipped early, briefly below 1.3600 before bouncing with reports circulating that Russia and BIS had been notable buyers.  The recovery didn’t last long and sell orders tipped at 1.3640/50 never came into play.  We were soon back below 1.3600, downbeat comments from Fitch Rating (see above) pressuring the pairing.  We’ve been as low as 1.3562 so far, presently at 1.3570.

EUR/JPY is down at 121.75 from early 122.50.

Cable has had a bad day.  Started around 1.5010 and was under pressure fairly quickly. Poor RICS housing data out overnight, Times poll showing Labour and Conservatives running neck and neck in key marginal seats and Moody’s warning of possible downgrades to UK banks/lenders among factors weighing. 

The sell-off accelerated as comments from Fitch Rating hit the wires (see above) and as data came out showing UK’s trade picture worse than expected (see above) We’ve been as low as 1.4940 so far, talk of sovereign buying below 1.4950 lending some very tenuous support.  We’re presently at 1.4952.

USD/JPY has seen a more active morning, down at 89.80 from early 90.30 amid heightened risk aversion and ongoing reports of fiscal year end repatriation flows.  A US investment bank seen notable seller this morning.  We’ve been as low as 89.63 so far, just above tipped buy orders at 89.50/60.

Earlier there was talk of sovereign buy interest from 1.3585 to 1.3570, including apparently China.  Lets see if they turn up as scripted.

Elsewhere cable down at 1.4960.  Earlier there was talk of sovereign bids down around 1.4950.

Seems like market against the sovereigns, just for a change.

Copper is down half a percent and gold trades down at $1121.

EUR/USD trades at 1.3635 as the market is reminded that there are no quick-fixes for Greece…

The new disclosures rules are aimed at giving investors more of the information they need to hold companies to account. Currently, Japanese companies are allowed to withhold information that is taken for granted in the United States.

Companies will have to reveal the names of any directors earning more than Y100 million ($1 million) and give a breakdown showing salary, bonus, stock options, and pension payments. The same applies to “statutory auditors,” who are the Japanese equivalent of non-executive or supervisory directors.

Companies will also have to disclose the roles of their independent directors, whether they have any financial or accounting expertise, and the details of their relationship with the company’s internal audit function.

The FSA also wants to make companies report more about the outcome of resolutions put to their annual shareholder meetings. Currently, Japanese companies only have to report if a resolution was passed or not. In the future, they will have to reveal the number of votes cast for or against and the number of votes withheld.

The FSA stated that more detailed voting disclosures, “will give a clearer picture of the decisions made by shareholders, which will entail a better functioning of the market pressure over the management.”

The proposals are subject to consultation until March 15 and will take effect on March 31.

It’s been a busy morning, characterised I guess by greenback giving up early strength as a little bout of optimism broke out. Certainly European stocks, gold, oil have all posted gains.

EUR/USD started around 1.3530 and is presently at 1.3560.  Inbetween though the pairing managed to post a session low 1.3435  with a UK clearer seen a particularly aggressive seller throughout the early morning.  Stops were tripped through 1.3450 as wires carried report of another Greek public workers strike being sceduled and we reached 1.3435 low.

The bounce was very quick.  We’ve had reports of sovereign buying at various levels this morning, with Asian sovereigns prominent. Looks like China has been very active, but we don’t have direct confirmation. Certainly smelt like a Giant Panda.  BIS was in as both a seller (up around 1.3540) and buyer (around 1.3510) and was probably active at other levels.

Cable started around 1.4930 and fell early reaching session low 1.4856 in double quick time.  The subsequent bounce came equally quickly amid talk of Asian sovereign purchases. A US investment house came out with a EUR/GBP sell recommendation and this pressured the cross in turn helping support cable.  Hedge fund buying has also been notable today.

EUR/GBP at .9070, pretty much unchanged on day after volatile morning trade.  Early rally to .9093 gave way to heavy selling as talk of US investment house sell recommendation did the rounds and we went all the way down to .9020 before very healthy bounce.

USD/CHF sits at 1.0790, down from early 1.0820.  An early rally reached session high of 1.0889 and then turned round very quickly at reports surfaced of “huge” sell interest lined up at 1.0890. This no doubt was protection for well-touted barrier opttion interest up at 1.0900.  Talk is the option interest is scheduled to roll off this Friday.

AUD/USD up at .9025 from early .8990. Talk of Asian sovereign buying helped rally, but talk of China on the offer at .9040/45 has capped that rally.

USD/CAD down at 1.0350 from early 1.0425 amid talk of good model fund selling this morning.

USD/JPY off about 30 pips at 89.05. Little surprising it hasn’t been better supported by improved risk sentiment. Maybe proximity of fiscal year end and yen repatriation flows inhibiting.

We are up to $1107 from lows around $1090 earlier today.

EUR/USD is seeing another round of short-covering and trades now at the 1.3520 level.

Chalk up some of the earlier AUD weakness to that news, as well as talk that China may experience a burst debt bubble of its own in coming years.

AUD/USD trades in the 0.8915 area after sliding below 0.8880 support earlier in the session on US investment bank sales. Gold is at $1093.50, having traded as low as $1090.50 earlier.

Comments from Czech FinMin and German lawmaker won’t have helped Greek jitters any.

EUR/USD has slipped back, presently at 1.3520.  Market struggling for clear direction so far today.