JPY was the main mover in the session.........>

FOREX: JPY was the main mover in the session today, seeing strength after the

BoJ cut 10+ Year JGB purchases under their YCC programme. The market interpreted

the cut as a tightening move due to economic strength, USD/JPY dropped to lows

of 112.50, last down 51 pips at 112.59. USD/JPY looked due for a pull back after

rising above the 113 handle, opinion among many is that this move is overdone,

the cut not a tapering signal but merely an attempt to reverse recent

flattening. The move in JPY was enough to spark a bout of US dollar selling, DXY

dipped slightly on the session.

- The AUD was another mover, seeing gains after stronger than expected Building

Approvals data. Monthly figure rose 11.7% in November against -1.3% expected.

Annual figure up 17.1% from a revised 17.5% previously. These figures followed 2

months of above expectations data. AUD/USD ground higher throughout the session

after the initial jump higher, last up 13 pips at 0.7854 after hitting highs of

0.7865. Post data ANZ point out much of this strength was due to increases in

Victoria and warn that the result could be reversed next month. Elsewhere

markets were quiet with euro and sterling broadly unchanged on the session.