In this Asia Focus, Andrew Robinson, correspondent for Saxo Capital Markets, looks at how Asian markets are fairing in the aftermath of the U.S. credit rating downgrade and Eurozone debt woes. He also reviews the latest macro data out of China where inflationary pressure is still strong as indicated by the latest CPI data for July. Due to this however it is difficult for the People's Bank of China to follow in the Federal Reserve's and other central banks' footsteps with quantatitive easing measures. Instead the yuan might be the only instrument it has at hand to tinker with and Andrew says it may pay to keep a close eye on the PBOC's daily fixing of its currency against the dollar, after it was today set at the lowest rate since the revaluation in 2005. He also gauges the success of recent attempts by the Bank of Japan to weaken its currency and foresees more intervention ahead. Furthermore, he previews Australian unemployment data for July which is seen staying little changed due to limited job growth which is mainly in the part-time sector.

See more of Andrew's market commentary here on TradingFloor.com