Risk aversion is back on Tuesday, courtesy of two articles in the Wall Street Journal suggesting that European financial institutions may not be as healthy as originally thought.
 

The euro is among the worst performing currencies in the G10 in the aftermath of the news, with the currency down 1.0% against the USD on Tuesday.
 

The Australian dollar is also underperforming on the back of the incumbent Labour Party winning the national elections after gaining support from the Greens. The news means that the controversial mining tax will once again return to parliament where stronger measures to tax the industry will be considered. All in all that news is negative for the Australian dollar, which had rallied several months ago on speculation of more lenient legislation.
 

Adding to the woes of AUD, was a neutral Reserve Bank of Australia, which left rates unchanged at 4.50%, as expected, but failed to sound as upbeat about the nation’s economic performance despite some strong GDP figures last week.
 

The Japanese yen is the day’s top performer after the Bank of Japan left its monetary policy completely unchanged despite some speculation the central bank would once again increase the size of its ¥30 trillion lending facility in a bid to weaken the yen.

USD/JPY has headed lower on the back of the news, combined with the risk-averse flows into the yen, as traders seek a safe haven for their capital.
 

As market set their sights to the North America session, there is no major economic data on the docket, leaving much of the focus on the broader moves in equities.