The focus for Asia was mainly on JPY crosses rather than dollar moves as the market waxed and waned between risk appetite and risk aversion. Early in the session, JPY crosses rallied on renewed risk appetite as the U.S. government bailed out AIG, fueling Asian stock market gains. USDJPY rallied from early Asian levels of 105.20 to hit 105.78 highs on JPY cross buying. But the USD suffered against other currencies such as AUD, NZD and EUR. EURUSD rose from levels under 1.4100 to highs of 1.4221, fueled by EURJPY gains from 148.42 to 151.55. GBP and CAD had similar reactions, based on cross plays. But, midday, reality set in on the outlook for the global economy from the latest credit crisis. Germany’s Steinbrueck warned that German growth was likely to be under 1% and Asian stocks retreated on growth fears, turning negative and taking JPY crosses lower, weighing on AUD, EUR, NZD, etc. USDJPY pulled lower to 106.09. The BOJ left rates unchanged as expected but the central bank has had to inject Y5.5 Trillion in four actions in the last two days, and US overnight cash rates rose as high as 8.5% in Asia on liquidity demand. Commodities rallied on the AIG bailout, with oil rising over $3 above $94 in October futures contracts and gold rising from $774 to $785 with platinum and copper higher as well. But, commodities pared some of the gains in the afternoon as stocks retreated and global growth concerns increased.