Themes

• General mood is “risk off”
• U.S. ADP Non-Farm Payrolls weaker (-301k from +200k talk)
• U.S. stocks finish up for the fourth consecutive session

What’s Moving

The USD was hammered again overnight, pressured lower by a much weaker than expected (and negative revisions) to the ADP Non-Farm Payrolls number. Main benefiters on the day were the Euro and Sterling, which saw short covering after underperforming over the last week or so.

U.S. stocks posted their fourth consecutive session of gains, although after the bell, Meta (Facebook) shares   have been hit hard as earnings missed expectations and forward guidance was weaker than expected.

Thoughts

Expect consolidation of weaker USD level in Asia today, with short covering expecting to support te downside, while opportunistic sellers should cap the upside.

On the local data front today we have:

• Australian Building Approvals (E: -0.9%)

While China remains out for the Luna New Year holidays.

Pivot Points