ForexLive US wrap-up: EUR/USD rally stutters ahead of 1.3650

Germany's Merkel: No chance of extending Euro safety net beyond 2013; state insolvency scheme should replace it; Germany wants EU Treaty change to allow voting rights suspension for bailed out nations EC's Barosso chides Portugal to stop "shilly-shallying" FT: Irish banks to receive additional funds tomorrow IMF: AUD mildly overvalued US think tank expects further quantitative ease after Tankan Minneapolis Fed's Kocherlakota: Dollar plays small role in US employment situation; Fed did not discuss dollar relative to quantitative ease Obama: CNY undervalued; contributing factor to US trade deficit Philly Fed's Plosser: No need for further asset buys Boston Fed's Rosengren advocates more aggressive Fed policy ECB's Gonzalez-Paramo: Currency volatility bad Italy's Berlusconi survives confidence vote Canadian finance minister Flaherty says July GDP may be negative, deficit to be larger than forecast Portugal announces more austerity for 2011 S&P 500 stalls at 1149 again, closes down 3 points at 1145 US 10-year note yield rises 3 bp to 2.50%; gold rises to fresh record at $1313, closes at $1309 China currency bill seen likely passing US House of Representatives in early evening hours Jawboning by European officials, bad news on Irish banks; more austerity from Portugal, and he-said/he-said back and forths between Fed hawks and doves were unable to derail the powerful rally in EUR/USD today though it has finally slowed from an unsustainable pace. EUR/USD did not have the momentum to overcome a barrier at 1.3650 despite several upside attempts throughout the session. Options-related selling as well as selling from US real money investors helped keep a lid on the powerful rally of late. Asian central banks were rumored to be diversifying reserves into EUR, GBP and AUD on any weakness today. AUD/USD saw modest profit-taking ahead of this afternoon's in the US House on China currency manipulation.  The bill is almost sure to pass the House but will likely stall well short of becoming law anytime soon, so downward pressure on commodity currencies should be minimal as a result of this bill. USD/JPY found support at 83.51 today and rallied into the 83.80s briefly on a US consulting firm report forecasting greater easing ahead from the BOJ. Prices soon edged lower and close around 83.65. Downward pressure on USD/JPY is likely to remain in place through the end of the fiscal half-year tomorrow. GBP was well offered relatively speaking toward as EUR/GBP rallied strongly along with EUR/USD. Typical month-end demand will likely keep that cross underpinned through Thursday's European close.