The NY session was an absolute rollercoaster ride. Equities traded with a bid tone early on as better US economic data helped boost risk appetite. US consumer confidence printed 55.9 in January from an upwardly revised 53.6 the prior month. The details of the report were constructive as well, with the labor differential (jobs plentiful minus hard to get) improving for the second consecutive month. EUR/JPY continued to prove one of the more correlated crosses with equities and it promptly rallied into the 126.40/50 highs on the back of the risk rally. The market would sell off into the close as the Geithner testimony and Obama's State of the Union address loom tomorrow, providing plenty of event risk to chew on. The correction sent EUR/JPY back down towards the 126.10 zone on the follow.

The reversal in the commodity complex was a touch more sustainable. Gold (XAU/USD) staged an incredible comeback and managed to go from a NY open near $1087 to back up above the $1100 area. This rally in the commodities space helped the Australian and Canadian dollars get a boost. AUD/USD soared from 0.8940 up towards a session high by 0.9030 while USD/CAD feel out of bed from the 1.0690 highs to lows just about -100 pips south of there. Australian consumer prices are due up overnight now and a stronger than the expected 0.4% quarter/quarter number should see Aussie squeeze a touch higher.