Key Points

Bias: Risk off


U.S. stocks drifted off slightly overnight, as players looked to book profits after the recent relief rally. Weak U.S. Industrial Production and Capacity Utilization numbers also weighed, while players looked to trim gains ahead of Initial Claims which are now expected to top 5mln for the third consecutive week. The market managed to trim losses into the close, but still finished in the red.

Currency markets largely gyrated with movements in equities, with many players sidelined ahead of Initial Claims. The Bank of Canada left rates unchanged, which saw USD/CAD soar. The Dollar opened firmer, but largely gave back gains against most pairs. The AUD was slightly firmer on the day, in line with firmer commodities.

Oil was firmer on the day but lost momentum into the close to end below $20/bbl, while gold prices consolidated recent gains.


We are expecting a very quiet Asian session today, with Australian Unemployment priced in as “bad.” Expect currencies to trade recent ranges until U.S. Initial Claims numbers tonight. There is also talk that at some stage today U.S. President Trump will announce a back to work plan.


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