Profit-taking on USD shorts and long USD-JPY positions was the opening them in Asian trading with the fall in the DJIA Monday and a 1% decline in the Nikkei fueling the correction. Adding to the moves were rumors, proven to be correct, that the China trade data would be weaker than expected. However, the pullback in JPY crosses and USD retreat were both short-lived with buyers emerging on dips, resulting in mere consolidation for both the USD and the JPY crosses. EUR-USD opened just under 1.3600 in Tokyo before dropping to 1.3563, led by EUR-JPY stop-loss selling but bounced back as high as 1.3615. USD-JPY opened around 97.60 and fell to lows of 97.14 on the cross sales before bouncing back to 97.45. Asian stock markets, aside from China, were broadly lower. Oil consolidated above $58/brl. Fed’s Bernanke said the USD will be strong because the Fed is committed to assuring price stability and added that he expects the USD to remain the world’s reserve currency. The HKMA continues to intervene, spending HK$6.975 bln on Monday in NY.