Asian session: European nations prepare to sell bonds

01:30 Australia RBA Deputy Gov Battellino Speaks

04:30 Japan Industrial output final October 2.4% 2.4% 2.2%

04:30 Japan Industrial output final Y/Y October -3.3% 0.1%

The euro traded 0.2 percent from an 11-month low as European nations prepare to sell bonds amid concern the region’s debt crisis is far from resolution. Italy is scheduled to auction as much as 3 billion euros of debt maturing in 2016 today, while Germany plans to sell 5 billion euros of two-year notes. Spain will offer debt maturing in 2016, 2020, and 2021 tomorrow.

The dollar held gains from yesterday against most of its 16 major peers after the Federal Reserve said the U.S. economy is maintaining its expansion and refrained from taking new action to lower borrowing costs, easing concern policy makers are devaluing the world’s reserve currency.

The yen was near the highest level in more than two months versus the 17-nation euro as Asian equities dropped, boosting demand for safer assets.

“If the European economy were to slow markedly over the next year or so, Australia would be affected,” Battellino said in Sydney today. “It is also likely, however, that if that were to eventuate, the exchange rate of the Australian dollar would fall, as it has when global growth has weakened in the past.”

EUR/USD: on Asian session the pair traded in range $1.3515-$1.3550.

GBP/USD: on Asian session the pair traded in range $1.5465-$1.5495.

USD/JPY: on Asian session  the pair holds in range Y77.90-Y78.05.

European data for Wednesday starts at 0730GMT with the BoF retail survey from France. EMU industrial output data then follows, at 1000GMT. US data starts at 1200GMT with the weekly MBA Mortgage Application Index. US data at 1330GMT sees the Import/Export Price Index, while at the same time, Atlanta Fed President Dennis Lockhart is due to deliver a speech about Atlanta at the Midtown Alliance Annual Meeting. The weekly EIA Crude Oil Stocks data is then due, at 1530GMT.