• AUD/USD: Barrier reported still at .9200 with stops likely to be heavy directly below. Yesterday’s highs at .9270 will provide the obvious resistance level;
• USD/JPY: The Japanese remain the main sellers of Yen, with yesterday’s data on foreign bond demand showing why. Overnight reports suggest that the first layer of Japanese bids will be at 101.30/40. Topside we will see more selling from the big Sovereign players like Russia, China, Korea, and the BIS; they’ve been all over the options market like a cheap suit! Market expects these offers to be very heavy between 102.10/25;
• EUR/USD: All eyes on the 200-dma at 1.3635 although some technicians will consider the daily close below 1.3670 as a defining event. These are likely to be the range edges during Asian trade;
• Cable: Bids reported now 1.6840 with stops below there and offers are heavy 1.6920/30. Very unlikely that Asia will trouble this range.