Themes

· General mood is “risk off”

· Hawkish Fed Minutes held to support the Dollar

· U.S. Crude Oil inventory data prompts an offer in oil

What’s Moving

It was all quiet going in early overnight trade with tight ranges from Asia being respected, until the Fed Minutes opened the door to potentially multiple 50bp rate hikes, which saw the Dollar go on a tear. This saw Dollar gains across the board.

Oil markets were disappointed by U.S. Inventory numbers, seeing oil prices slightly weaker, while gold was sideways to slightly lower on the day.

Thoughts

More consolidation is expected in Asia today, with little local data and two-way trade expected after the overnight Dollar bid. Local data today sees Japanese Leading Indicators, which are expected to come in at 100.9% from 102.5% last month.