Session Recap: 'Wait and see mode' to set next USD direction

FXstreet.com (Barcelona) - A very slow session in Asia, with a vacant calendar not helping to provide stimulatory price activity.

Amid no external incentives for currencies to set a particular direction on lack of data, and with still a mixed perception towards any sort of taper in October, risk-off currencies USD and JPY had a decent performance, holding on recent timid advances.

The cautious stance to avoid further bids in risk assets comes amid mixed taper signals. On one hand, Fed's Bullard dovish comments from Friday were supportive for the USD, although they were challenged by Fed’s Lockhart on Monday, saying the US economy is losing it’s mojo, this seeng a tough case for October taper.

Asian equities performed poorly, with the Nikkei 225 down around 0.50% in Japan, the Shanghai Composite recording over 0.30% losses, while the Hang Sen 40 saw 0.50% losses, mimicking the Nikkei.

Main headlines in Asia

AUD specs short squeeze: extended range ahead?

DXY continues consolidation / bounce – 80.71 may be the upside limit

Bloody Tuesday for Asian equities

Dovish ECB should limit EUR upside - RBS