EUR/USD extended gains in Asian trading on Tuesday, initially consolidating through most of the morning session, capped by EUR/JPY sales from a German name, only to rally into the afternoon session to trade to 1.3579 also aided by EUR/JPY buying from hedge funds and Japanese importers. A 3% rally in the Nikkei is adding to the positive mood of the markets and increased appetite, as is the news that U.S. banks are looking to repay TARP funds. Also helping to underpin the EUR/USD are the expectations that the ZEW survey due later today in German to rise for the seventh consecutive month to show the best result in two years at 20. Offers are eyed at 1.3590/00 and higher at 1.3650 that should help temper EUR gains. Bids are reported at 1.3500, 1.3450 and at 1.3420 on dips.