Overall, the market seems again to buy the safety of the U.S. dollar. The majors gave away some important pips during the Asian session, even though usually, things work very slowly at this time of the day. Additionally, the euro again saw a gap at the Sunday open. Last time the euro gapped, two weeks ago, the market needed a few days until it was able to properly close that gap.

The Euro (Eur/Usd) saw a 20-pip gap at the Sunday open. Soon after, the euro plunged another 60 pips, and broke under the Friday low, as the European Union Crisis Meeting failed to reach an agreement on Eastern Europe. Many analysts see this as a major drag to the Euro-area.

The Pound (Gbp/Usd) fell 100 pips and broke under the neutral pivot point (1.4260) in the Asian session. However, the pound is currently trading very close to the 1.4150 area, which has held the pair for a few weeks now. In case any negative news appears about the U.K. financial system, this support area might be tested in the following period.

The Aussie (Aud/Usd) managed to break under the 0.6350 support area in the Asian session. This is an important move pulled by the aussie, since the daily chart shows that this area acted as a very important swing point in the last period.

The manufacturing sector in Australia has fallen to 31.7 in February from the previous reading of 36.6 in January. This is the ninth consecutive monthly decline for manufacturing activity in Australia, although the rate of decline has eased slightly from the low seen in November of 2008.

The inflation estimate for Australia, released this evening by TD Securities, increased by 0.7 percent month over month for February. This report shows that inflation pressures have somewhat stabilized as the economy attempts to buffer itself from the global recession which has diminished exports and consumer confidence wanes.

The Cad (Usd/Cad) rose a few pips higher during the Sunday open, and touched the highest value seen since December. However, due to the low liquidity environment from the Asian session, the pair had to move somewhere lower, under the Asian open price.

The Swissy (Usd/Chf) traded in a 30-pip range in the Asian session. The pair struggled to break higher, but could not pull the move. In the last period, the swissy traded in a wide range, unable to trend anywhere, similar to the rest of the majors.

The Yen (Usd/Yen) moved very strongly in the Asian session. The pair fell initially 70 pips, but then recovered every pip lost. In addition, the pair also tested the Friday low tonight, when the yen closed lower for the first time in the last five days of trading.

The Japanese cash earnings decreased in January by 1.3 percent, this was after a 1.2 percent drop seen during December. Overtime hours fell by 40 percent while overtime pay dropped 14.8 percent. Overtime pay fell at its fastest pace ever as exports declined which prompted employers such as Toyota and Sony to cut hours and halt factory production lines.