ForexLive Asia-Pacific wrap: Risk receeds

China HSBC flash PMI 48.1 vs 48.4 prior New Zealand Q1 GDP +1.1% vs +0.4% exp Canada to lower mortgage amortization to 25-years from 30 Reuters poll sees 50% chance of QE3 BOJ's Ishida: Economy has started to pick up JPD proposes to extend Diet session NZD leads, AUD lags Gold trades below $1600 Oil falls as low as $80.21 Shanghai composite falls 1.6% to lowest since early April Nikkei +1% to highest since mid-May Modest deterioration in sentiment as the market focused on the downgrade to the Fed's growth forecast and the lackluster China PMI (especially the soft new export orders). The euro opened near 1.2700 but began sliding almost immediately. Some buyers emerged at 1.2680 but the stability was short-lived, sending the pair as low as 1.2660. USD/JPY tested the US session high of 79.70 after an early drift to 79.38 but offers up to 79.80 halted the move. Spot at 79.59. NZD/USD surged above 80.00 for the first time since early May after the strong GDP report but the gains have slowly, and completely evaporated, down to 0.7969. Oil has been bleeding lower, down to $80.34 from $81.05 at the beginning of the session.