Asia Session

With so many ''Stress Test'' leaks over the past few days, it would seem that tomorrow's release of the stress test data will be short of drama, thus easing some worries today in Asia as Yen positions were sold early as traders began to dabble back into riskier trades. Adding to the confidence was US Treasury Secretary Geithner, when speaking earlier in NY he stated that not one of the tested banks was proved to be insolvent. Add a strong equity market to the mix (Nikkei up almost 5%), and risk aversion dwindled. USD/JPY started the session near lows of 98.27ish and got as high as 98.84 before softening to the 50 levels. EUR/JPY was directionless, up a few pips for the session after roaming in a 75 pip range.

It was the action Down Under that stole the spotlight today however, as employment data in both New Zealand and Australia impressed, boosting both currencies. In New Zealand, the Kiwi dollar made solid moves north after data showed a lower unemployment rate than expected, the NZD/USD rose from 0.5820ish to break through 0.5910 before dropping two dozen pips ahead of London's open. The AUD/USD reached seven month highs after data showed that instead of the projected loss of jobs, the island actually added 27,300 jobs. AUD/USD blasted from session lows near 0.7460 to top out a full big figure higher just over 0.7560. The data seems to have relaxed any further talk of rate cuts in the land down under. In Europe, the Euro lost a bit of ground versus the Greenback, as it traded from early highs of 1.3335 to current levels at 1.3285 with a stop at a session low of 1.3275 on the way. It could be surmised that many traders of both the Euro and Pound are positioning themselves for the upcoming rate decisions that are scheduled for later in the London session. The general consensus is that the BOE will leave rates untouched at 0.5% and the ECB will cut rates by 0.25% to 1.00%, however it is the statement by ECB President Trichet that follows that will have the attention of all as it remains to be seen if the Euro Zone will engage in similar quantitative easing maneuvers that seem to have worked for the US and Australia among others............

Upcoming Economic Data Releases (London Session) prior expected