Key Points

Bias: Risk neutral

Commentary

U.S. stocks were again weaker overnight, pressured as the U.S. Republicans and Democrats failed to reach agreement on the next Corona Virus stimulus package. Earnings results were also mixed, with Pfizer beating estimates wile 3M and McDonald’s disappointed. Position adjustment ahead of tonight’s FOMC was also blamed for the lackluster trade.

The currency market continued to consolidate within recent ranges overnight, with no range extensions seen on anything of major note. A report questioning the value of the USD as a reserve currency from Goldman Sachs also weighed, while the AUD posted a fresh year high at 0.7182.

Oil prices slid overnight with profit taking seen on the futures. Gold posted another historical high.

Bias

Expect continued ranging in Asia today ahead of tonight’s FOMC and with a lack of fresh cues from offshore markets. Data today sees Australian CPI, German Import Prices and U.S. Trade and Pending Home Sales. No change in policy is expected from the Fed.

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