Themes

· General mood is “risk off”

· U.S. Michigan Sentiment comes in at a 10-year low at 59.1

· Chinese data to be the focus today

What’s Moving

European trade was quiet with players waiting see what the U.S. session would do with price action. The U.S. market chose to focus on a strong opening for U.S. stocks, which pressured U.S. yields lower.

U.S. Michigan Sentiment then came in much weaker than expected and at a 10-year low, which pressured the dollar across the majors. This, in addition with a bounce on oil saw good buying of commodity currencies, with the CHF, Yen and Euro also well supported over the day.

Thoughts

Expect a quiet start to the session in Asia as locals consolidate overnight levels and adjust positions ahead of today’s key Chinese data.

Data today in Asia sees:

· Japanese PPI (E: 9.4%)

· Chinese Retail Sales (E: -6.2%)

· Chinese Industrial Production (E: +0.5%)

· Chinese Unemployment Rate (E: 6.0%)