Dealers note Chinese buying in EUR/USD on dips today but selling by other Far Eastern accounts on rallies above 1.3000. One near-constant feature of the dollar rally during the second half of 2008 has been selling of EUR/USD by the central banks of South Korea, Singapore, Malaysia and the Philippines as they defend their local currencies against the dollar and offload EUR/USD holdings to keep their asset mix in line. China’s recent buying may be more telling if they are “diversifying” reserve assets away from the dollar, as was the case on the rally toward 1.3000. EUR/USD trades quietly now at 1.2950.