The JPY led the way in early Asia-Pacific.....>

FOREX: The JPY led the way in early Asia-Pacific trade, benefitting from dented

risk sentiment. USD/JPY last trades around Y110.45, after having a look at

Y110.25/20 (Hourly support) in early dealing. BOJ's Harada warned against a

premature tightening of highly stimulative monetary conditions, repeating his

view that the already low unemployment rate must fall further to help push up

the below 1% inflation rate toward the bank's stable 2% target.

- USD weakness extended as the yuan built on Tuesday's rebound based on a

combination of verbal intervention from the PBOC & rumoured physical

intervention via the Chinese state owned banks on Tuesday. USDCNH & USDCNY now

trade 9 figures off of their recent highs, underpinning a pull back in the USD.

- AUD benefitted from stronger than exp. retail sales data & CNY strength,

shrugging off the soft AU trade balance print. AUD/NZD hovers around the long

term trend-line resistance at NZ$1.0940, after PBOC market assurances, firmer

oil & gold prices pushed the cross above the level on Tuesday. A clean break

above would shift bulls' focus to NZ$1.1000 area and the YtD high at 1.1073.

- Focus on Wednesday falls on EZ & UK Services & Composite PMIs.