The US Dollar was back to its old tricks again today in Asia as it lost its footing found on Monday and posted a new round of losses across the board. Trading was pretty subdued once again in Asia as Japan was out for the second day of a three day holiday stand. EUR/USD was able to breach the 1.4720 level after trading a handle lower earlier in New York; however the move was only worth 50 pips from the session open. GBP/USD crept higher all day, reaching a 1.6258 high after humbler beginnings near 1.6200. The Pound did soften to levels closer to 1.6225 as the day wound down.

 USD/JPY took losses as Dollar weakness pulled the pair from around 92.10 to lows near 91.65 with Japan out and equities in the red. The crosses all sank slightly on the aforementioned equity weakness.

The only data of the session of any significance ignited the fuse to a huge 13 month high in the NZD/USD as Current Account came in better than anticipated. The data catapulted the Kiwi dollar from 0.7060 levels to lofty heights over 0.7185. NZD/JPY shot higher 10 pips short of a full big figure to 65.85 and the ever volatile AUD/NZD dove from 1.2215 to lows south of 1.2090 on the news.

With the US FOMC and the G-20 Meeting in Pittsburgh looming, look for continued consolidation of the major currencies as they wait for clues to future dollar direction.

Upcoming Economic Data Releases (London Session)                 prior      expected

9/22/2009

6:15

SZ

Trade Balance

AUG

2.35B

- -

9/22/2009

6:15

SZ

Exports (MoM)

AUG

4.10%

- -

9/22/2009

6:15

SZ

Imports (MoM)

AUG

-1.70%

- -

9/22/2009

9:30

FR

Lagarde Press Conference on G-20

22-Sep

  

9/22/2009

12:30

CA

Retail Sales MoM

JUL

1.00%

0.50%

9/22/2009

12:30

CA

Retail Sales Less Autos MoM

JUL

1.00%

-0.10%