The US session opened with the dollar on its lows. EUR/USD rallied as high as 1.4876 after breaking through resistance at 1.4815/20, 1.4842 and 1.4866. Heavy buying by Asian central banks (including talk of buying by China in an area where we would have expected to see them sell) helped boost the EUR to new highs.

Price pulled back sharply, however, with several waves of EUR/GBP selling seen throughout the morning. A large German bank lead the selling, taking the cross down nearly a cent from 0.9412 highs.

Markets were particularly order-driven today. A single large USD/JPY buy order was able to boost the buck from 89.65 to 90.08 during the US afternoon before prices retraced the whole move.

EUR/USD found support at 1.4800 repeatedly and ends the session in the middle of the days range, around 1.4835. Technically, traders would rather have seen a close above the 1.4866 level to remove any ambiguity.

Same story in the dollar index. DXY fell to 75.92 today but quickly rebounded back above the 76.00 level that we’ve been keying off for such a ;ong time.

AUD slipped intraday as low as 0.9030 with several waves of proft-taking seen as well as the Rio Tinto comments on slowing Chinese copper imports spooking those heavily invested in the reflation trade.

USD/CAD rebounded from low of 1.0268 early in Toronto trade to end at 1.0350. The buck got a modest boost from jawboning from Canada’s PM, Mr. Harper.

Late in the session, Intel reported very strong earnings. This could set up an equity rally overnight which in turn could weigh on the dollar.