Aud-yen supply pressured in early Asia...>

DOLLAR-YEN: Aud-yen supply pressured in early Asia following the release of soft

Australian CPI. Dollar-yen slipped from Y113.98 to Y113.75 before an improving

Nikkei cushioned falls. The pair made another attempt at Y114.00 ahead of Europe

but failed to take out strong supply here linked to a very large ($2.14bn)

option-expiry for today's NY cut. Rate drifted to settle either side of Y113.75.

A break on the topside opens Japanese exporter supply through Y114.10/20, techs

behind at Y114.33 (61.8% Y118.66-107.32). Support at Y113.55 (Hourly low). US

data release today at 1230GMT from Durable Goods. Orders are expected to rise by

1.1% in September after a 2.0% rebound in August, though the impact of the

hurricanes presents a downside risk. New Home Sales follow at 1400GMT,

expectations are for it to slip further to a 555,000 annual rate in September

following larger declines in the previous two months. Dollar-yen last Y113.78.