• AUD dipped on comments from RBA Debelle that interest rates could be used to offset the strong AUD, but once again the AUD played second fiddle.
  • EUR/JPY fell from 121.50 to 118.80 in late NY trade and then rebounded to 121.30 in early Tokyo when the fall in the Nikkei wasn’t as bad as feared.
  • Nikkei -2.25%, HK -1%, Gold $1592/oz.
  • EUR fell in afternoon trade on heavy end-of-month flows according to investment banks.
  • EUR/CHF and EUR/GBP both broke overnight lows and EUR/JPY fell back below 120.00 before steadying.
  • Hedge funds and CTAs still sitting on large EUR/JPY positions so danger remains to downside for now.