The US dollar is little changed against most of the major foreign currencies today as a consolidative tone emerges pending fresh developments. The euro made a marginal 2-year low in early Asia, but narrow ranges have prevailed and the euro has traded in a little more than a quarter cent range in Europe, mostly below $1.23. The dollar has been in an even tighter range against the yen, where a 14.8% decline in machinery orders (consensus was for around a 3% decline and a current account surplus half of what was expected) played on growth fears. Soft Chinese CPI (2.2% June from 3.0% in May) and weak jobs ads undermined the Australian dollar ahead of the employment figures later in the week.

Growth concerns are undermining equity prices ahead of the beginning of the US earnings season. The MSCI Asia Pacific Index was off 1.5%, with the Shanghai Composite approaching