A relatively quiet trading session was enlivened by the poor Chinese trade data. EUR/USD and AUD/USD trailing stops were triggered but it was cable leading the way as it posted another fresh hourly low below 1.3690. Most traders now expect that a fresh test of recent 1.3500 lows may be only a session or two away. JPY crosses also headed lower and dealers are talking about trailing stops on longs built up over the last few weeks which may now be targeted.

Sovereign bids are seen in the EUR/USD at 1.2550/75. The AUD/USD barriers at .6280/.6560 are still in place.

Gold is trading around $898/oz and crude is marginally higher at $45.40/bbl. The Shanghai stock market index bucked the regional trend by losing 0.5%.

Ranges: EUR/USD 1.2635/1.2737, USD/JPY 98.30/85, EUR/JPY 124.20/125.70, cable 1.3672/1.3804, AUD/USD .6401/92 and USD/CHF 1.1581/1.1664.