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Forex pairs in this Article » EUR/USD, GBP/USD, USD/JPY (Bali) - As expected, the Asian session preceding Central Banks day was extremely quiet, with all G10 currencies confined in tight ranges, with the exception of the Australian Dollar, which saw some timid activity on downbeat Australian trade deficit, yet no follow through noted.

The Japanese Yen was range-bound for most of the session, only pressured after Tokyo came back from lunch, with the Nikkei 225 losing over 1%. Despite it was Gotobi Day in Japan, which implies firm demand for USD/JPY, the pair encountered sell orders ahead of 102.45/50. Some bids are reported beneath 102.00. Chatter has it that sizeable stop sell order may be clustered below 101.70 ahead of 101.50.

AUD/USD saw an initial downmove on Aus trade miss, yet most capital got sidelined today, preventing further losses, which led to a marginal short squeeze but well capped by first important layer of offers at 0.9050.

Ahead of ECB, EUR/USD traded with a bid tone, exploring levels above 1.36 with bids still solid circa 1.3550-60. Meanwhile, GBP/USD remains in re-distribution phase, stuck at 1.6380.

Main headlines in Asia

Will Nikkei 225 fill the gap? If failure, watch for Yen strength ST

Australian trade deficit softer-than-expected

Moody's changes outlook on Spain's Baa3 to stable from negative

Macro factors to keep AUD depressed in 2014 - JPMorgan
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