The USD has come in for some extensive selling during the Asian session. EUR/USD printed a low at 1.2580 shortly after the NY close but it has been one-way traffic since. With equity markets and commodity markets remaining relatively quiet, this USD selling has been a relatively new phenomenon- a straight FX market move brought on by major flows.

The Nikkei is down 0.5% but still holding above the psychologically important 7000 level. HK and Shanghai bourses are up close to 0.5%. Gold and crude are very steady at $918/oz and $46/bbl respectively.

British banks are seen selling cable on the approach to 1.3850 and stops are building below 1.3740. EUR/USD selling was heavy between 1.2700-20 and it needed to be to soak up the heavy buying. The AUD/USD option barriers at .6280/.6560 are said to be in place until the end of March.

Ranges: EUR/USD 1.2579/1.2717, Cable 1.3763/1.3850, USD/JPY 98.38/99.13 and AUD/USD .6312/.6400