Caution remained the theme once again in Asia as traders shunned the Euro and risk amidst continued fears that the regions banking system may be fragile. Comments from the FOMC's Ben Bernanke didn't help risk sentiment when he stated that the US would only be offering dollar swap lines to other central banks for a concise period of time. EUR/USD was unseated from its early 1.2385 perch to see lows near 1.2270, with about a big figure of wiggle room to the downside until new 4 year lows are retested. The song remains the same for the EUR/USD; with traders selling rallies every chance they get.

As stated, risk aversion was the story as the trade day got underway in Asia, pulling yen crosses lower until stronger equities helped pare early losses. EUR/JPY tripped from highs just shy of the 112.00 level to lows near 110.50 until a 50 pip reprieve late in the day pushed the pair near 111.00 heading into London. GBP/JPY dropped over a big figure from 130.60 to 129.30, and AUD/JPY decreased from 75.00 to 73.50 with the late day moves pushing the pairs just off of session lows. Traders should be on the lookout for continued saber rattling out of the Korean Peninsula that will be a further detriment to the yen crosses and risk sentiment as a whole. Against the dollar, the yen remained whippy, trading between 90.00 and 90.50.

Looking at commodity currencies, the AUD/USD was lower on the day after it poked over the 0.8300 level early on, looking to exit Asia near 0.8230. USD/CAD bounced off of 1.0640 lows to print a 1.0735 high, and NZD/USD finished up at 0.6665 after a round trip to 0.6710 and 0.6640. XAU/USD remained bid in Asia as it churned higher by four bucks to $1206.00. WTI/USD remained below the $70 per barrel mark, due to decreased optimism about global growth.

Tomorrows Durable Goods and New Home Sales data should be the keys to dollar and equity moves in the US, provided there is a limit to the ever present pessimistic news out of Europe.