All was going smoothly for the risk trade overnight as strong Aussie retail sales added fresh fuel to the fire. But since then, there has been a steady drip of cautionary news.
China hiked deposit rates, emptying the punch bowl a bit as it was getting close to overflowing. Super-negative comments toward the JPY from new Japanese FinMin Kan helped give the dollar a goose. He called for a weaker yen and decried fiscal austerity which helped fuel fears of a Japanese fiscal crisis in the not-too-distant future. Throw in Dubai and Greek jitters, and suddenly the side lines do not look like such a bad place to be. Crappy euro-zone retail sales have been a kicker, as well.
EUR/USD has fallen back toward 1.4300 amid the usual talk of buying from Asian central banks diversifying reserves. 1.4285 is next support but more is arrayed down toward 1.4245, where the 200-day moving average is situated today.