Session Recap: US shutdown, RBA, Japan tax...

FXstreet.com (Barcelona) - Plenty of fireworks along the Asian session, yet in the spotlight remains the confirmation that the U.S. government will partially shut down its daily operation on lack of funding.

Other key 1st tier events along the Asian session involved a disappointing China PMI, the RBA keeping both rates and its 'neutral' policy tone unchanged, while in Japan, PM Abe finally decided to raise the planned sales tax from 5% to 8%, due April 2014.

In terms of currency movers, the Australian Dollar was the big winner now flirting with 0.94 post recovery off sub 0.93, followed closely by the Japanese Yen after 'shutdown' headlines, with EUR/USD approaching 1.36, while GBP/USD saw highs of 1.6240.

Key headlines in Asia

Obama speech: Shutdown to disrupt US economy significantly

Japan Unemployment Rate up to 4.1% in August from 3.8%

Australian PMI back into expansion territory

Japan: latest Tankan results suggest tax hike done deal

China PMI misses expectations, 2nd time this week

U.S. government notifies federal agencies to shut down operations

Japan PM decides to raise sales tax from 5% to 8%

RBA keeps rate at 2.5%, statement 'neutral'