ForexLive Asian Market Wrap

Australian September retail sales +0.6% vs +0.2% expected UK shop price inflation stabilised in September Moody's downgrade of Italy affects general market sentiment, Nikkei -0.5%, Kospi -1.5% Japan may buy more bonds to support EFSF BOJ Shirakawa says economy in severe state and likely to stay that way Gold +0.9% to $1632/oz; Oil +2% to $77.50/bbl EUR/USD opened near the session highs just under 1.3350 but fell consistently through the morning as mild risk aversion returned on the back of Moody's Italian-debt downgrade. EUR/JPY selling was the main driver and the cross fell 100 pips before stalling just ahead of technical support at 101.40. EUR/USD bids at 1.3250 also helped arrest its fall. Ranges: 1.3257/1.3344 AUD/USD fell despite strong retail sales data with risk-aversion still the dominant market theme. No-one seems to have much of a stomach to hold onto any positions and AUD/USD will ned the session mid-range. Overall range .9484/.9566 USD/JPY has again done nothing in a 76.58/89 range. USD/CHF traded .9169/.9231 and cable 1.5410/80 Originally posted at Forex Live.