Asia Session

And so another day in Asia, and subsequently another day of the US Dollar getting pummeled as rallies in equities and commodities helped send the risk assets flying high once again. With more and more proof that the global economy might be limping out of the financial crisis you will be hard pressed to find many traders who don't think the Dollar can still have a long way to fall. Needless to say, the dollar looked weak for the session versus all counterparts as traders continued to seek higher yielding assets while stocks continued to make gains in Asia once again. The EUR/USD stayed at lofty heights made in NY, but could not breech the earlier high of 1.4445, falling short by almost 15 pips. After that quick session high, the Euro lost some steam as it drifted under 1.4390 to register session lows there. The GBP/USD did post a high not witnessed since late October of 2008 when it hit 1.7002, but that high as well was fleeting as the gains melted to levels closer to 1.6940 by day's end. The Aussie and Kiwi Dollars both hit over 10 month highs, reaching near 0.8470 and 0.6710 respectively. Those highs looked to be evaporating as well as profit takers swooped in prior to the London open. The RBA left rates unchanged today as expected at a 49 year low of 3.00% to no ones surprise.

As the dollar sunk so did the yen, as yen crosses hit multi month highs on the new and cavalier global attitude toward risk. EUR/JPY made an almost two month high to near 137.60, and GBP/JPY posted a high just short of 162.20. AUD/JPY has done nothing but go up since mid July, today peaking out at 80.81, also a 10 month high. As was the case across the board, a late round of profit taking pulled the crosses back from their highs. Tomorrow brings Aussie Trade Balance, and looking ahead, the week will end with the all important US Non Farm Payrolls employment data on Friday, which should be a good barometer of just how solid this recovery actually is.

Upcoming Economic Data Releases (London Session) prior expected