Tuesday's Asia session got off to a slow start, with many pairs continuing to trade in a tight consolidation range following the US holiday. But risk would quickly come off the table, as traders took the opportunity to take profits on recent gains. EURJPY sold off sharply, dealing 100 pips to the downside from highs to lows just near the 132 handle. EURUSD also felt the heat, with the pair barreling back through the 1.40 handle to deal below 1.3950. AUDUSD also slammed 60+ pips lower in what appeared to be broad based dollar selling.
On the economic front, New Zealand trade balance was released just about in line with estimates, stirring little market reaction.
Ahead in the upcoming London session, traders will turn their attention toward a slew of Euro Zone data including German GDP as well as UK housing data which has been increasing correlated to the Cable exchange rate.
