HSI is trading with a negative bias playing catch up from yesterday holiday in reaction to the weaker China PMI data. But at least for today, it’s more than apparent HK investors are in no mood to join the revamped NAFTA festivities.
Oil markets are holding onto the astonishing overnight gains ahead tomorrows API inventory data. But, oil traders are biding time and waiting for another cause and effect to buy more barrels.
Gold has been nudging higher as risk has been trading a bit unsettled in Asia as expressed by the HSI mini melt, and Italian EU risk. The USD is consolidating recent gains vs the Yen but looking to bully the EURO lower on early London flow.
While the USDJPY is following the more hawkish FOMC playbook, but the lack of follow-through above 114.00 suggesting positions are getting a bit crowded and USD bulls are in need of some absolute “risk on” to breakout topside
The EURUSD is getting squashed by a toxic combination of higher US interest rates and Italy risk, look for more downside momentum on this trade
The Canadian Dollar
The USDCAD is merely biding time, but eventually, 1.2800 give way. Perhaps Asia CAD traders are waiting for Bay Street to run with the baton given RM chatter around 1.2800. Short EURCAD continues to be the favourable expression on a bullish CAD view
The Pound, on the other hand, should continue trading like an old beach roller coaster, getting moved by the latest BREXIT iteration
In the battle for the most dovish G-10 central banker award, as expected the RBA held rates in check. With nothing explicitly standing out in the statement, I think the Aussie trade is on hold till Fridays NFP