Asian FX continues to see weakness against....>

FOREX: Asian FX continues to see weakness against the euro with the EURCNH cross

testing its recent range highs at 7.9800 as bulls look for another chance to

close and hold above the key 8.0 level. This has been a tough level to overcome

in recent weeks.

- EURKRW is also edging higher as bulls look to challenge the July 24 high at

1329.7.  A break above here would bring long-term downtrend resistance into

focus. 

- EURJPY is back above its 55-dma trading at 129.23 with the 21-dma providing

support for the bulls yesterday. A break above 129.98 is needed to build on

recent gains and challenge the Aug 30 peak ahead of a potential run at the

100-dma at 131.16.

- EURAUD has been on an impressive run over the past three weeks, gaining 4.4%

to trade at its highest level in 3 years. The Aug 2015 high of 1.6590 is the

next upside target but with real bond yield spread continuing to widen, the

fundamentals do not favour continued gains. The 10-year inflation-linked bond

yield spread is 194bps in the AUD's favour and the widening trend remains.