ForexLive Asian market wrap: China returns bringing good news with it

Shanghai opens +2% after week long holiday China reduces purchases of Japanese debt Japan's current account balance Y1.1 trillion Latest BOJ policy meeting minutes Moody's considers upgrade of Chinese government bonds RBA still upbeat; rates likely to rise at some stage Fairly quiet session ahead of some big risk events in the NFP number and the G7 FinMin meeting. The USD opened the session in a positive mood after some decent rebound gains overnight as short-covering finally kicked in. EUR/USD closed in NY at 1.3925 and tried to break back below 1.3900 but momentum was again lacking. China is said to be defending a major barrier at 1.4000 but is reloading sales from yesterday below 1.3900. Range: 1.3904/62 AUD/USD also tried to break lower after the failure to close above the previous .9850 high but the positive sentiment out of China helped turn session trading around. Ranges: .9793/.9847 USD/JPY has been unable to break outside of overnight ranges and has consolidated in a tight 35 pip range. FinMin Noda returned to the newswires with more talk of intervention but traders do not expect to see the BOJ again pre-G7. Ranges: USD/JPY 82.16/51, EUR/JPY 114.54/89 Cable 1.5861/99, EUR/GBP .8757/83 Markets: Shanghai +3.25%, HK +0.75%, Nikkei, Kospi -0.2%. Gold $1335/oz.

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