The euro has recovered nicely to the same levels we saw after the S&P downgrade of Spain at the beginning of this session. It saw considerable selling pressure most of the night taking out scattered stops below 1.2850 but finding very good support at 1.2825. It has since rebounded to 1.2865 ahead of sellers up at 1.2880/90. Pressure also came from selling in EUR/CHF as stops were triggered below 1.2080, reaching a low of 1.2057 on the night. EUR/AUD started the session around 1.2580, but ran into heavy selling after the S&P news and then continued to fall on good Aussie employment numbers reaching a low and good support at 1.2500.

USD/JPY near session lows at 78.01/03 poised to test stops below 77.90 if it chooses to do so. Offers above at 78.30/40 were never even considered.

AUD/USD continues to show more signs of strength after sellers failed to breach the 1.0200 level. A quick 20 pip rally after the employment numbers saw first lines of selling at 1.0250 finally give way and we are now working on the next resistance level at 1.2080/90.

Looking forward to what comes out of the G7 meetings later. Have a good day.