Risk aversion fueled the price action in the currency market in Asia on Monday with the USD and JPY firming while EUR, AUD, GBP, CAD and Kiwi faltered. JPY gains were mostly on the crosses however with USD-JPY holding a tight range. Market concerns that the U.S. stimulus package and bad bank measures have been delayed help fuel some of the risk aversion though negative data for AUD, NZD and the EUR helped weigh on those currencies with expectations of rate cuts this week in the UK and Australia are also helping to pressure sterling and Aussie. Asian stocks were mixed with negative earnings news weighing on the Nikkei and helping to underpin the risk aversion. Oil prices remained under $42 and gold eased over $14 as the USD stayed firm. Treasury yields edged lower in Asia but signs that the credit markets may be thawing are being noted including the launch of the first Samurai issue in Japan in five months by Westpac and recent narrowing of the TED spread. EUR-USD opened under 1.2800 and traded to lows of 1.2711. USD-JPY, though pressured, held a very tight range of 89.53-89.93.