Forex and commodity trading took a cautious turn on Tuesday. Wall Street and other equity markets fell also including Asia this morning. Crude Oil came off of its highs and Gold was not able to sustain its momentum. As of this writing the precious metal stands near 1691.00 USD. Even the grain markets traded lower on Tuesday as an element of speculation was dealt a blow when Russia said they would not renew any export bans on their grains.  Supply questions and concerns remain strong for the grains such as wheat and corn because of weather related problems on crops in the U.S., thus commodities remain a trading environment that is not for the faint of heart.

Interestingly, the AUD remains in its downward trend against the USD. This in light of physical resources remaining near their highs. This shows outright divergence in the broad market place and should be counted as a road sign warning. While the EUR did lose some ground to the USD on Tuesday it remains near the values of its late summer rally. With the ECB on the calendar tomorrow the biggest question in the financial crisis barn remains how Mario Draghi is going to back up his summer rhetoric which assured investors that the ECB would deliver on its promise for stability. While Draghi has spoken well, as of yet the European Central Bank has offered nothing in concrete and investors will be counting on Draghi to deliver evidence via a quantified outline tomorrow or the Single Currency could find itself under the gaze of a very skeptical crowd.

As noted late yesterday, the ISM Manufacturing PMI reading from the States missed its mark. Recessionary data has started to come up through the cracks from the U.S. and all eyes will now turn to the Non-Farm Employment Change results on Friday, while the Federal Reserve stands in the shadows waiting for its turn next week. Besides the ECB monetary policy meeting tomorrow, German Factory Orders will also be released and the weekly Unemployment Claims and the ISM Non-Manufacturing PMI reading will be published from the States. Thursday will offer plenty of news and most investors will be cautious as it approaches.

Germany is undertaking a 10-Year Bond Auction today and its yields will no doubt be compared to those of Spain and Italy. Later today Canada will make its interest rate statement, but no major changes are expected from the BOC. The CAD like the AUD has lost value against the Greenback the past month. Much later tonight for those on GMT, Australia will bring forth its unemployment data. The Australian economy like most others has started to show signs of strain and global investors would be wise to use Australia as a barometer for knock on effects from slowdowns in China, Europe, and the States. Short-term traders should stay aware of the storm surge that could confront them tomorrow.