[Calxy]

There has been the smallest of consolidations in currency ranges over the weekend, with the EUR only pressing to new highs for the year following the NY open. Options triggers at 1.4650/EUR have lent a few fireworks before the rate fell back. Sterling was not able to recover Friday's highs. USDCAD put in a double bottom last week and the CAD is weaker today as Australia joins the major energy players with the announced $ 40 bln Gorgon investment in LNG extraction and transport. LNG is a proven technology and Australia has the benefit of lower transport costs to its principal customers in China, Japan and India. California's Chevron Corp leads this project though Royal Dutch Shell and Exxon each have a major stake. Australia offers a much more congenial home to major capital investment in energy than unstable African regimes. The global economic center of gravity shifts more firmly toward Asia.

The US news of the week comes tomorrow with Retail Sales data for August. Thursday we see Industrial Production and Capacity Use. The German ZEW Surveys are out of Thursday as well. The top international news story on the weekend was a decision by the White House, on Friday, to impose tariffs on Chinese tires.