A relatively quiet Asian session as the FX market traded within fairly tight ranges. Australia's wage price index rose at a slower pace in the first quarter, matching the third quarter of 2011 as both private and public sector wage growth slowed. The private sector gain of +0.6% was the lowest since 2009 which might explain the RBA's benign outlook for inflation. This is another sign that the Australian economy is not performing up to par and leaves the door open for further rate cuts. The US dollar still looks primed for more appreciation, especially -vs- the Yen and the Swiss Franc but, given its increasingly overbought state, the potential for sharp corrective moves is also rising. The Pound is testing its key support level of 1.5200 ahead of the BOE inflation report due out a bit later. Gold is still languishing below 1440 and the longer it stays at these levels, the greater the odds of it heading lower.