A stronger USD and JPY fueled by renewed risk aversion dominated the Asian session as the AUD, NZD, CAD, EUR and GBP came under steady selling pressure. Weak data in Europe and the U.S. on Thursday coupled with the slide in U.S. stocks was followed by a plethora of bad releases in Asia with NZ building consents at 22-year lows, Australian credit contracting for the first time since 1992 and a record plunge in Japanese industrial production. USD/JPY, which began the Sydney session above 90.00 dropped to lows of 89.20 with reports now of exporters chasing USD/JPY lower. EUR/USD which was trading around 1.2935 at the Tokyo open, after a plunge overnight, dropped to lows of 1.2877. Cable dipped under 1.4200, down from late NY levels around 1.4330 weighed down by the fall in the GfK consumer confidence. Kiwi hit six year lows in today's sell-off. Asian stock markets were mostly lower led by the Nikkei on reports of larger losses for Toyota and bad news from Nintendo and Toshiba. Oil remained under $42 with gold extending gains slightly, above $906 on safe haven flows.
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