THE dollar-yen pair has been on the tear since the start of February, climbing over 500 pips to hit highs not seen since May of 2011 around ¥81.84. The strong month-long trend line was broken though yesterday around ¥81.30 and it does look ripe for a correction. Look to sell any rebounds towards ¥81.40/50 with ¥80.00 the first target, then ¥79.50. Spread Co quotes a spread of ¥81.06- ¥81.09 on dollar-yen.

Sterling-Aussie dollar has pottered around in a fairly tight range over the past month, but with the recent weakness in markets might we be seeing an improvement in sterling’s fortunes? A reduction in Chinese growth expectations has unnerved markets, and this could well put a dampener on the Aussie’s seemingly unstoppable charge higher. All good things must come to an end, and just like the shift in power between the English and Aussie cricket teams, perhaps sterling-Aussie dollar is set for a move higher as some traders opt for the northern hemisphere over the southern. IG’s price is Au$1.4870-Au$1.4884.

This week’s economic data out of Australia could well herald a change in sentiment for the Australian dollar-dollar with concerns about future Chinese economic growth starting to potentially weigh on the upside. CMC Markets spread on Australian dollar-dollar is $1.05914-$1.50921.

The euro continued its dive yesterday and clients were furiously trying to pick the bottom only to continue to have their fingers burnt. The single currency headed back towards the $1.3000 level as investors fled the riskier currencies and sought safety in the US dollar. Capital Spreads quotes a price of $1.3115-$1.3116 for euro-dollar.

The Kiwi dollar has had a torrid time of things so far this week, seeing a 1.05 per cent fall against the US dollar. As with the Aussie dollar, the Kiwi is at the mercy of the Chinese slowdown and the European crisis.

Look for continuing downsides in the Kiwi-dollar, testing support at the $0.8115 level. If this breaks, look for Fibonacci support at $0.8082. IG Index quotes New Zealand dollar-dollar at $0.8108-$0.8119.