Key Points

Bias: Risk off

Commentary

U.S. stocks opened firmer overnight, supported by optimism that the worst was over for Corona Virus. Late trade saw the market pair back gains ahead of tonight’s Non-Farm Payrolls, which saw divergent closes across the major indexes. The DJIA ended firmer, while the S&P and NASDAQ were both slightly softer at the close.

The USD was weaker in overnight trade, pressured by the “risk on” posture, which saw the AUD, EUR and CAD all surge higher. Further support on the EUR was seen after the ECB announced a further E600bln in Q.E. Reports were also of HKMA intervention to buy the USD/HKD.

Gold prices rose overnight, continuing to decouple from other markets as short-coverers took over. Oil prices were firmer on continued talk of an OPEC+ production cut extension.

Bias

Expect a quiet end to the week in Asia, with all eyes going to be firmly focused on tonight’s U.S. Non-Farm Payrolls number. Other data today sees Japanese Household Spending and German Factory Orders.

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