The dollar is slightly firmer today despite softer US bond yields – and a general flattening of the 2/10 year curve -, and has made gains against most pairs with the exception of the US$Jpy, which has traded a little lower, but in a tight range as year-end de-risking flows persist, ensuring ongoing demand for the Yen. In other markets, oil is 3% lower due to increased supply from US producers while stocks are steady and the metals are mildly lower but still holding on above critical support.
Looking ahead, it could be yet another busy day for the Aud$, with the release of the AIG Performance of Services Index, the October Trade Balance (exp $1.375bio) and the China Foreign Exchange Reserves. There is a bit of secondary Japanese data out too, but that is it from Asia. Europe will look to the German October Industrial Production and EU Q3 GDP (exp 0.6% qq, 2.5% yy). The US will focus on speeches from the Fed’s Dudley and then later from the ECB’s Draghi. All up it could be that we chop around going nowhere fast while waiting on tomorrow’s US jobs report.
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|ASX SPI: 5965|