The market had high hopes of a break-out in the range on the dollar that has held for the last month, but was sorely disappointed with the dollar rally rejected Wednesday and the dollar ending the week in Asia, firmly within the recent 1.3800-1.4200 range in EUR-USD and in familiar ranges against the AUD, NZD and GBP. The USD-JPY however is still suffering from the renewed risk aversion, with the currency pair consolidating around 93.00 in Asia with a range of 92.77-98.18 seen during Friday's session. EUR-USD was heavy, edging down from 1.4013 to 1.3964 but still firmly ensconced in the middle of the recent trading range. NYMEX crude remained weak, holding near $60 and down slightly on the session with fears over global demand underpinned by reports that Japanese cargo shippers are taking large price cuts in Pan-Pacific cargo deals and with the Baltic Dry Index continuing to fall. The shipping cuts weighed on shipping stocks in Japan, limiting any rise in the Nikkei with Asian stocks mixed on the day. Treasury yields edged marginally lower from NY levels as JGB yields for two-year bonds dropped to fresh 3 1/2 year lows.
