It has been a volatile day in FX with Norway's Crown, the Aussia Dollar and emerging Asia falling sharply. Reuters FX analyst, Neal Kimberly, makes sense of today's movements and says what's bad for Asia is bad for the Aussie Dollar.

SHOWS: LONDON, ENGLAND, UK (JULY 29, 2013) (REUTERS - ACCESS ALL)

1. REUTERS FX ANALYST, NEAL KIMBERLY, SAYING:

JOURNALIST ASKING REUTERS FX ANALYST, NEAL KIMBERLY: 'Second quarter growth far weaker than forecast. It missed everyone's expectations. So it's no surprise that the Norwegian is getting hit hard.'

'Yeah, the market was positioned long of Norway going into this number. I must admit I would have been killed like everybody else here but now we've come up 8.00 on Euro/Nokkie. Oslo is telling me the predominant concentration of buyers of Euro/Nokkie has been non-Norwegian. Norwegian guys actually fading into it, Norwegian Krone weakness to buy Crowns. And I have some sympathy with that because the GDP number was weaker than we expected but the Norwegian data has been volatile in the recent months.'

JOURNALIST: 'The growth story will paint a different picture. 0.2% growth compared to expectations of up to 0.8% is pretty weak and the Norges Bank will see that and think, okay it'll be time to ease. In which case, 8 goes out of the window.'

'If they do it then obviously you're talking about 8.10, maybe 8.15, a lot of stops above 8.10, Jamie. But for those people, and I'm saying might, if you're still in this position on Norway, you're going to need some squeezing after that disastrous number.'

JOURNALIST: 'The Australian economy is slowing, Asia is slowing, the mining sector is slowing, so why aren't they below 0.90 on Aussie?'

'I mean, is it 0.90-0.92 the range, Jamie, that's what I'm thinking because yesterday I came in and talked to a lot of guys in Asia when the Aussie was around the 0.9210 level. Now we're going to be here, we're going to be short of Aussie up here. The RBA is going to be as it turned out so we need to be short of the Aussie into the RBA, not after the RBA. So those guys are short, they came back and took back their Euro/Aussie back below the 0.90s this morning. The rest of the market's jumped on the bandwagon because obviously as well as the RBA and the RBNZ, you've also have a selloff in emerging markets and with the Australian market so linked to Asia, what's bad for Asia is bad for Aussie.'

JOURNALIST: 'So 0.90 on the downside is a big run number obviously. But an upside you mentioned, 0.92, is that where central banks are quite keen to sell?'

'You know a number of guys I speak to have been shying away from the Aussie for weeks. But they are clear to me if we get above 0.92, that 0.92 handle, they have an interest to sell some Aussie.'

JOURNALIST: 'Okay and to finish up, the Euro, just before we came on air, the Euro popped above $1.34, it's a two-month high, $1.34. Pretty remarkable and it doesn't really tie in with this overwhelming consensus that the Dollar is king.'

'I love the Dollar as you know, but at the moment we're in a situation, it's not just the Dollar, it's developed markets versus emerging markets. And developed markets are doing that Mark Twain thing, 'some rumors of my death are greatly exaggerated.' Everybody wrote off developed markets. Emerging markets breaks united without it. Well, it's come back with a vengeance. And the money that's coming out of emerging markets is going home. If you're a French investor and you've been piling into emerging markets in Asia for the last five years, you took some of your money out. You don't want Dollars, you want your home currency, you're going to the Euros and that in my opinion is helping to give the Euro a better bid tone.'