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Session Recap: Markets consolidate; Euro awaits news from Italy

A session of consolidation in Asia ahead of a key Italian bond auction later today. The Australian Dollar has been the currency most pressured, although in relative terms, since ranges have averaged 30 pips the most. The 1.02 contention area continues to offer reliable support for now, with very heavy turnover near the level being reported.

The Euro has been well supported by short term bull traders, with an initial fall towards 1.3040 on a Moody's headline warning on Italian's rating agency, yet flows out of Hong Kong managed to take the price for a quick ride to 1.3070 before stabilizing. The Japanese Yen traded sideways awaiting fresh headlines out of Tokyo. The Kiwi remains weak after .

Main headlines in Asia (in chronological order)

- What the sound of silence means today

- S&P: Italy's ratings not immediately affected by elections result

- New Zealand Jan Trade Balance (MoM) decreases to $-305M vs $486M

- NZD/USD confirms break of rising trendline; 0.83 becomes resistance

- Will investors buy on Japan's policy facts? - Nomura

- Japan's retail trade figures above expectations

- Australia: Cyclone halting exports of iron ore in WA

- S&P warns on possible scenarios for Australia's rating

- Moodys: It would consider downgrading Italy if the economy worsened and reforms stalled

- EUR/USD holds 1.3050 despite Moody's headline

- AUD/USD resisting a break of 1.02

- Suga: Abe aims to submit BOJ nominations tomorrow

- Australia: Recap on the big miss in Q4 Construction Work Done

- Australia domestic building seeds of growth could be germinating - NAB

- Gold higher on Bernanke testimony

- EUR/USD flat around 1.3060 ahead of Italy bonds auction

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