China had been reportedly selling EUR/USD during the NY session close to 1.3000 and as Asia opened just below there, we did initially hope that there may be some action but we were wrong. EUR/USD traded in a tight 1.2980/1.3017 range and selling interest close to the previous highs was enough to dissuade interbank dealers from targeting stops above 1.3030. Ranges: EUR/JPY 112.80/113.17.

USD/JPY has been very quiet in a 19 pip range, 86.84/87.03.

The AUD has tried to move on a few occasions but most dealers are now sitting back ahead of tomorrows CPI number. Ranges: .9001/27.

Cable has been similarly quiet in a 24 pip range, 1.5480/1.5504 and EUR/GBP .8383/98.

Markets: Nikkei +0.3%, HK flat, Kospi flat, Shanghai -0.35%. Gold $1184/oz.