Fed Chairman Bernanke's comments in early NY provided a mark-to-market in terms of the Fed's outlook. Bernanke highlighted the fact that toxic assets remain a barrier to capital raising and that fiscal stimulus alone will not spur a lasting rebound in the US economy. He also expects inflation to continue to moderate in the months ahead. This somber assessment saw risk trades come off and the USD benefit overall.

Stocks were unchanged in broad terms as traders look for the upcoming US retail sales report tomorrow to provide some direction on this front. EUR/USD sank about -100 pips into the 1.3180 area as the NY session came to an end. The close below the 55-day SMA of 1.3215 now opens the door for a move towards the 1.30 level near-term. The catalyst here should be an extra dovish statement out of the ECB this Thursday coupled with an aggressive rate cut.

EUR/JPY shed about -70 points and was sitting just above critical support by the 117.80/90 zone. USD/CAD saw a sizeable gain early in the session as US trade was better while Canada's surplus disappointed. The pair ran into a good barrier just above the 1.23 level and eventually pulled back to a close by 1.2240 as the late drive higher in oil prices eventually dictated the pace.

Upcoming Economic Data Releases (Asia Session)

1/14 0:30 GMT AU Home Loans NOV 1.30% 1.00%

1/14 0:30 GMT AU Investment Lending NOV 0.70% 1.50%

1/14 0:30 GMT AU Value of Loans MoM NOV 2.40% 0.00%