Session Recap: USD and Aussie climb ahead of G-8; Yen and Euro weaken

FXstreet.com (Barcelona) - A priori expected another quiet session in the Asia-Pacific ahead of the big event in the form of G-8 meetings in Northern Ireland turned out to be a pretty volatile one as soon as Tokyo traders hit the floor, sending USD index (DXY) near session highs at 80.80 level.

USD/JPY posted session highs around the 94.80 mark, and EUR/USD printed lows at 1.3320, while AUD/USD broke above the 0.96 handle, last at session highs 0.9622. Local share markets are mostly all in the green, with Nikkei up +2.27% and Hang-Seng +1.33%, while Gold and Oil are little changed.

Tertiary Industry Activity in Japan showed a slightly increase from previous data but still below expectations at 0.0% on a monthly basis, up from -0.2%, when +0.2% was expected. New Motor Vehicle Sales in Australia improved to 0.0% m/m from previous -1.7%.

Main headlines in the Asian Session:

China's credit bubble unprecedented, Fitch says

Deutsche Bank ‘horribly undercapitalized’ – US regulator

Flash: Bernanke may be dovish but FOMC still set to taper - UBS

Article: Economists See Risk of Australian Recession

Aussie pops above 0.96 USD

Bank of Japan offers to buy debt from market

Australia May New Motor Vehicle Sales (YoY) falls to 0.2% vs 3.2%

Pressure builds for China rate cut

USD/JPY extends gains above 94.50

EUR/USD dips to fresh session lows ahead of G-8