The US dollar surged yesterday after the Federal Reserve essentially came out and said that they would start tapering asset purchases if the economy continues to trend higher and achieves sustainable growth. This momentum carried over into the Asian session as traders were content to continue buying the US unit -vs- the majors.
On the data front, New Zealand's first quarter GDP came out weaker than expected as did HSBC's China flash PMI for June which posted an 8-month low for the all important output index. The latter added more pressure on the AUD/USD as the pair plunged to levels not seen since September of 2010. Japan's Ministry of Finance reported that Japanese investors continued to reduce their holdings of international assets for the fifth straight week as they dumped 402.5 Billion yen of debt.