Forexlive Asia Wrap Up: S&P Starts The Euro Rolling

S&P cuts Spain's credit rating to BBB-minus/outlook negative. S.Korean PPI rose 0.7% m/m and 1% y/y. New Zealand September business PMI rose to 48.2 from 47.2 in August. Fed's Fisher says U.S. has "reasonable price stability", favors changing Fed's dual mandate to focus on inflation. Short-term measures to avert the fiscal cliff won't help job market. Worried Fed has done far more than required. New Zealand September food prices fell 0.9% m/m. Brazil cuts benchmark lending rate 0.25% to 7.25%. Japan August machine orders fell 3.3% m/m, fell 6.1% y/y. Japan September bank lending rose 1.2%. Australia October consumer inflation expectations rose 2.6%. Japan BOJ minutes for September meeting. 'Government will take decisive action on FX if needed. Expands asset purchases program.  New Zealand ANZ October consumer confidence index fell to 110.5 and 1.3% m/m. Australia September employment numbers better than expected adding 14.5 jobs (forecast 5K), unemployment rate rose to 5.4%. S. Korea cuts key interest rate 0.25% to 2.75%. IMF's Largarde says "we need action to lift the veil of uncertainty." The euro has recovered nicely to the same levels we saw after the S&P downgrade of Spain at the beginning of this session. It saw considerable selling pressure most of the night taking out scattered stops below 1.2850 but finding very good support at 1.2825. It has since rebounded to 1.2865 ahead of sellers up at 1.2880/90.  Pressure also came from selling in EUR/CHF as stops were triggered below 1.2080, reaching a low of 1.2057 on the night.  EUR/AUD started the session around 1.2580, but ran into heavy selling after the S&P news and then continued to fall on good Aussie employment numbers reaching a low and good support at 1.2500. USD/JPY near session lows at 78.01/03 poised to test stops below 77.90 if it chooses to do so. Offers above at 78.30/40 were never even considered. AUD/USD continues to show more signs of strength after sellers failed to breach the 1.0200 level. A quick 20 pip rally after the employment numbers saw first lines of selling at 1.0250 finally give way and we are now working on the next resistance level at 1.2080/90. Looking forward to what comes out of the G7 meetings later. Have a good day.