Risk remained under pressure in early Asian trade after consumer confidence unexpectedly soured in the US, adding to weakness already in motion due to poor data out of China. The EUR/USD bottomed out near 1.2165 in morning trade but eventually found its footing back through 1.2230 as investors shrugged off risk aversion and looked to get back into the oversold European currency. EUR/JPY dropped off to 107.70 lows as news spread on the continuing riots in Athens and Spain, but that pair turned around as well, hitting 108.50 highs late in the day. In essence, the Euro remained in familiar ranges ahead of the Thursday maturity of the ECB’s 12 month EUR 442B loans to its banking sector.
Across the rest of the yen crosses the moves were more subtle, with the yen heavy for the better part of the day and its grip slipping as the London session began the day. AUD/JPY popped to 75.90 after earlier lows near 74.90, and GBP/JPY jumped from 132.90 to 133.50 highs by day’s end. USD/JPY spent the day range bound between 88.40 and 88.70, with talk of large option support at the 88.00 big figure.
The Aussie rebounded off of 0.8460 lows that were the culmination of an almost 3 big figure drop from 0.8750 only 24 hours ago. The pair was able to touch 0.8550 ahead of tomorrow’s vital retail sales and building approvals data. Also on deck later in the US is ADP employment data which should be a harbinger for Friday’s Non Farm Payroll data.