EUR/USD erased early 1.2240 highs to post lows just under the 1.2195 level, retracing a 24 hour move that saw highs of 1.2300. Against the Swiss Franc the Euro was decimated as the EUR/CHF spent another session making fresh all time lows near 1.3072. A reversal heading into London trade would add back almost 60 pips to that low.
Equities in Asia continued their five day slide, with the Nikkei down over 4% at points in the day, helping to keep the yen crosses weak in conjunction with the China data. EUR/JPY dipped to fresh 8 ½ year lows of 107.45, GBP/JPY found itself touching 131.40 lows on the session, and AUD/JPY lost almost 130 pips when it bottomed out at 72.30. USD/JPY slid from 88.55 to 88.10, but turned around to 88.40 levels as London awoke for the day.
After a plunge of over a big figure to 0.8315, the Australian dollar got a reprieve when it was announced that the government was close to a deal with mining companies over the 40% tax imposed by the former Prime Minister. The AUD/USD pair was firmer near 0.8350 as investors awaited further details of concessions between the two factions.
A big day lays ahead in the US with top tier data in the form of Unemployment claims, ISM data and pending home sales.