Asian Forex Wrap

NZ building consents up 2.8%. Japan's August core CPI -2.4% YoY. Japan's FinMin says Forex intervention a possibility if currency moves are abnormal Australian 2008/09 budget deficit A$27.1 Bln, better than the forecast of A$32.1 Bln. Asian bourses mostly higher, Shanghai continues lower. Gold trading at 991.00 Talk of M&A deal and general Tokyo fix demand pushes USDJPY higher. There was good USDJPY demand today, with talk of a large M&A deal underpinning the USDJPY. Demand was also seen heading into the Tokyo fix and with Fujii backtracking and saying that forex intervention was a possibility in extreme cases, the USDJPY remained bid with only shallow pullbacks. Exporter sellers on top ahead of fiscal half-year above 90.30 stopped any further advances. Talk of more buy side demand into the London fix tonight. A consolidation trading day saw EURJPY find support via USDJPY, clawing its way higher throughout the Asian session. EURUSD which was under pressure very early morning via a European name weighing on it, managed to recover on the back of the EURJPY demand. AUDUSD showed its resilience once more, with the better than expected budget deficit and technical bullish formation, helping it stay firm all day. Intraday range players were seen selling at the overnight highs, but the level to watch is 88c with option related sellers ahead of that. Ranges: EURUSD 1.4584 - 1.4634 GBPUSD 1.5872 - 1.5929 USDJPY 89.60 - 90.23 EURJPY 131.00 - 131.70 AUDUSD 8717 - 8754