00:30 Australia Current Account, bln Quarter III -7.4 -5.5 -5.6  

03:30 Australia Announcement of the RBA decision on the discount rate 4.50% 4.25% 4.25%  

The Australian dollar fell against all of its major peers after the Reserve Bank of Australia cut interest rates by 25 basis points for a second-straight month to 4.25 percent. The Australian dollar dropped 0.9 percent.

New Zealand’s dollar also declined as Standard & Poor’s put 15 euro-zone nations on watch for downgrades. Losses in the South Pacific currencies were limited after France and Germany said they want a rewrite of the European Union’s rules to enable closer cooperation in tackling the region’s debt problems.    New Zealand’s currency, nicknamed the kiwi, fell 0.5 percent.

German Chancellor Angela Merkel and French President Nicolas Sarkozy strengthened their push for new rules to tighten euro area economic cooperation as Standard & Poor’s said it may downgrade credit ratings across the region.

The leaders of Europe’s two biggest economies responded in a joint statement late yesterday that they “took note” of the move by S&P, while both countries “reinforce their conviction” that common proposals for closer fiscal union in the European Union will “strengthen coordination of budget and economic policy,” and promote stability and growth.

Germany and France risk losing their AAA credit ratings in a review of 15 euro nations for possible downgrade, S&P said. Investors say such moves might pave the way for the European Central Bank to do more to fight the debt crisis.

EUR/USD: on Asian session the pair is under pressure.

GBP/USD: on Asian session the pair fell.

USD/JPY: on Asian session  the pair traded in range Y77.65-Y77.85.