USD-JPY saw hopes of political change in Japan, along with Bank of Japan Governor Hayami saying a return to the ZIRP was not favored, saw Yen bulls reexert some pressure (also helped by Tuesday's revision up to Japan December IP data and ability of Nikkei to stabilize above 13,000). Talk of U.S. bank bidding at 116.20 out of late New York has seen market stall, but there are stops below there and Japan accounts are seen pressing for the 115.45/55 area if any further positive Yen developments.
AUD-USD broke the overnight 0.5270 low in early Asia/Pacific. More US sell stops rumoured towards 0.5260. Technically a move as low as 0.5250 seen possible Thursday.
European majors end on a consolidative footing, with the dollar at levels virtually unchanged from the open. Activity was largely confined to ranges, and earlier talk of option expiries in EUR-JPY and USD-JPY failed to make an impact on the market. Good buying of EUR-USD and EUR-JPY by a model/tech fund type gave a lift off the 0.9175, but failure to extend beyond 0.9200, prompted speculatives to unwind longs into the close.