FXStreet (Bali) - A subdued Asian session, with G10 currencies pausing amid a light calendar in Asia and caution ahead of the US Non-Farm Payrolls release on Friday.

On the fundamental domain, Argentina failed to reach an agreement with holdouts, with S&P rating agency declaring the country in selective default, in anticipation of a formal default announcement by authorities later on the week.

In Australia, building approvals for June disappointed after a 5% drop MoM vs 0% exp; Australia private sector credit for June came at 0.7% vs 0.4%, with export and import price indices also coming lower-than-expected.

In Japan, Yomiuri noted that Japan is planning to cut corporate tax by 2% in FY2015. Japan's labor cash earnings for June came at +0.4% YoY vs +0.8% exp. Also, BOJ member Kiuchi crossed the wires, saying that Japan economy is recovering moderately, but noting some downside risk to inflation, while adding that "QQE has big potential risks, such as difficulty normalising monetary policy and chance of stoking speculation of debt monetisation". Another headline, via Bloomberg, included "can’t rule out chance BOJ will be forced to ease more if markets view achievement of 2 pct inflation as difficult, even if costs of doing so exceeds benefits..."

Out of the Eurozone, Portugal's Banco Espirito Santo made it to the main headlines once again, after announcing that their capital fell below minimum regulatory requirement of 7% after suffering a 4.25B euro loss for the quarter.

In the UK, Bank of England Deputy Governor Broadbent; among the main headlines, it included "quite possible sterling is overvalued, first rate increase shouldn’t be ‘massive shock’, case for raising rates earlier for gradual path..." Also in the UK, the GfK Consumer Confidence for July came at -2 vs 2 exp.

Main headlines in Asia

United Kingdom Gfk Consumer Confidence came in at -2 below forecasts (2) in July

Japan Foreign investment in Japan stocks: ¥204.5B (July 25) vs ¥139.2B

Jul 30, 23:50 GMTJapan Foreign bond investment dipped from previous ¥116.1B to ¥-302B in July 25

Japan to cut corp tax by 2% in FY 2015, more fuel to the Nikkei 225?

Seasonal patterns: Yen strength in August?

The big run up in the Buck is finally here... - Nomura

IMF: China 2014 GDP expected at 7.4%

Australia Private Sector Credit (YoY): 5.1% (June) vs 4.7%

Japan Labor Cash Earnings (YoY) dipped from previous 0.6% to 0.4% in June

Australia Building Permits (YoY): 16% (June) vs 14.3%

Australia Import Price Index (QoQ) came in at -3%, below expectations (-1.3%) in 2Q

Australia Export Price Index (QoQ) came in at -7.9%, below expectations (-4.5%) in 2Q

Australia Private Sector Credit (MoM) above forecasts (0.4%) in June: Actual (0.7%)

Australia Building Permits (MoM) came in at -5%, below expectations (-2%) in June

BoJ's Kiuchi: Somewhat cautious on price outlook

Singapore Unemployment rate remains unchanged at 2% in 2Q

New Zealand M3 Money Supply (YoY) increased to 5.4% in June from previous 5.2%

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