Risk returned to Asian once again as markets followed the lead of US equities which soared earlier today helping to erase memories of a abysmal month of May. With US stocks pulling higher by over 2% on the day, the Nikkei 225 followed suite, making gains to the tune of almost 3% while sending the yen lower across the board. The combination of the aforementioned firm equity markets along with news that the current Japanese favorite for the Prime Minister job, Naoto Kan will gladly accept the position if so granted sent the crosses flying higher. EUR/JPY blasted higher by a big figure to 113.70 highs while AUD/JPY almost covered as much ground in its trek to 78.40. NZD/JPY didn’t lag too far behind as it move about 90 pips to late day highs near 63.50.

The EUR/USD saw gains to the tune of 80 pips as it crossed over 1.2310 to break new ground to the upside, aided by the run of the yen crosses. Moves to 83.75 in the EUR/GBP helped to keep the GBP/USD at bay with modest gains near 1.4700. Australian trade balance data firmed, (+0.13B vs. -0.62B forecast) helping to propel the AUD/USD to apex at 0.8500. Not to be left behind, the NZD/USD took advantage of positive comments from the S&P concerning the nation’s sovereign debt rating, moving from 0.6790 to highs just at the 0.6880 mark. Elsewhere XAU/USD remained consistent in Asia near the $1222.00 level and XAG/USD remained contained between $18.35 and $18.45.

While the important data for the week is over for Asia, the US has a lot on its plate to end the week. Upcoming later in the day is ADP Non-farm employment change, Unemployment claims, and ISM Non-manufacturing PMI data. Friday ends the week with every so volatile NFP data, along with building permits and employment/unemployment data.