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Forex pairs in this Article » EUR/USD, USD/JPY
FXstreet.com (Barcelona) - It was a quiet start of the week, with the Japanese Yen firmer and the Australian Dollar lower - recovered later - in response to lack of progress in the US shutdown/debt deal and downbeat Chinese trade data, respectively.

As the market edges closer to the debt ceiling deadline on October 17, and judging by the price action seen in Asia, in which moves were very much contained within dominant ranges, looks like the benefit of the doubt for a satisfactory -even if temporary - resolution at the 12th hour in the days to come is what traders and investors are still hoping for.

Over the weekend, headlines from key political figures in the U.S. were still quit discouraging, with Senate Majority Leader Harry saying "we haven't done anything yet." House Speaker Boehner said "The Senate needs to hold tough; the President isn't negotiating with us." Tea-party caucus member Fleming said "It's very clear to us he does not now, and never had, any intentions of negotiating", adding "there is definitely a chance we're going to go past the deadline."

Market had little incentives to move in either direction, and as a consequence, there was limited price action activity to report, with lack of follow-through to expand gaps being counter-attacked by equally half-hearted attempts to close them, except the Australian Dollar, picking up on China's CPI/PPI numbers. The Japanese market was closed today, not helping to inject any momentum/inflows into the FX market.

Main headlines in Asia

U.S. impasse still to be broken

China’s exports growth surprisingly lower

Four stories making the headlines over the weekend - Societe Generale

China's exports likely to remain subdued in coming months - RBS

Head of India’s central bank pressures Federal reserve

Singapore Q3 GDP +5.1% y/y (vs, +3.8% expected)

Australia Home Loans decreases to -3.9% in August from 2.1%

Merkel’s crucial week of talks on forming new German government within 2 months

China September Consumer Price Index (MoM) above expectations
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