ForexLive Asian market wrap; choppy on EU headlines

Various afternoon headlines have sent the risk trades lower in the first instance before recovering to end the session more or less unchanged. Comments attributed to an EU diplomat which debunked the ESM-bank idea, sent EUR and AUD lower. Subsequent Sarkozy comments helped the recovery as they intimated that the Franco-German package was likely to pass. It should be added that any agreement is probably only among the 17 state Euro Zone, with countries like the UK holding out on further EU treaty changes. Elsewhere, Chinese CPI came in below expectations at 4.2% YoY, down significantly from last month. The AUD reached session highs near 1.0200 just after this data, but fell heavily on the EU inspired risk aversion. Both Japan and Korea downgraded GDP assessments for next year. Regional stocks finished the day almost 2% lower on average. Gold $1710/oz, Oil $98/bbl.