Despite sharp falls in Asia equity markets...>

DOLLAR: Despite sharp falls in Asia equity markets on the escalating protests in

Hong Kong, FX markets remained calm overnight with major currency pairs held to

narrow range trade. The dollar registered modest gains across G10 at the

European crossover, AUD bucked the trend with investors looking ahead to

Thursday's Australian labour market report for clearer direction.

- The DXY encountered support from the 100-dma (97.35) yesterday and holds

toward the upper end of its 97.44-63 Asia range. Bulls need to clear the Aug 12

high at 97.73, before challenging the 98.00 area which holds the 50% retracement

level of 98.93-97.03.

- Gold remains on the front foot and closed above a major trendline on the

monthly charts. This is a significant bullish break which has seen the yellow

metal extend to multi-year highs of $1521.31. Next resistance is seen at $1527

from the May 2012 low.

- Oil prices slipped off their best levels following sluggish demand forecasts.

WTI/Brent last $54.68/$58.30.

- US CPI is due at 1230GMT. CPI is expected to rise by 0.3%.