Key Points

Bias: Risk neutral

Commentary

U.S. stocks rose again overnight, supported by the unchanged policy from the FOMC.  Also supporting were comments from Fed’s Powell that the Fed will continue to provide support until the Corona Virus threat has passed. The tech CEO testimony was also a focus, with many traders watching the livestream, but little trading was seen off the back of these comments.

The drift weaker on the USD continued overnight, with the Big Dollar swooning after the Fed left rates unchanged. The better commodity prices saw AUD, CAD and the NZD outperform on the day.

Oil and gold were again higher in overnight trade.

Bias

Interesting night overnight, with the Fed leaving rates unchanged (as expected) and US stocks and commodities continuing to rise. Expect consolidation of gains in Asia today, with eyes on Australian Building Approvals, German and Euro-zone Unemployment and U.S. Initial Claims and GDP data.

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