USD/JPY rallied to a high of 92.40 in early trade but met heavy selling again with talk of option protection ahead of 92.50. There are rumoured to be very heavy stop loss buy orders above 92.55 staggered up as far as 93.80. December machinery orders fell by 1.7%, which was much better than expected, but on the negative side, the ever present Japanese current account surplus has almost disappeared. The low in USD/JPY so far has been 91.40.
EUR/JPY rallied early to test 120.00 again but was met by heavy Japanese investment fund selling. The low has been 118.15 in a fairly volatile session.
EUR/USD has traded in a 1.2915/90 range with no major news announcements. EUR/GBP has seen a .8727/77 range after the usual bevy of negative press for the UK economy in the Sunday papers. Cable has been soft in a 1.4730-1.4875 range.
AUD/USD has drifted lower throughout the session, mainly as a result of AUD/JPY selling. The range for AUD/USD has been .6652/.6767. Job adds fell by 6.3% which added to the negative sentiment.
