Themes

· General mood is “risk off”

· Japanese Household Spending weaker than expected at +1.1%

· RBA left rates unchanged, as was expected

What’s Moving

A very quiet session in Asia today, with China again out on holidays and after a lack o fresh cues from overnight trade. Rangs were tight across all of the majors. Oil did catch a light bid in afternoon trade, but everything else held within tight ranges.

Afternoon trading saw the RBA leave Australian interest rates unchanged. Despite this, the AUD raced to a new session high.

Tonight sees a stack of second tier data, which could well define the flow of the session.

Data tonight sees:

· French final Services PMI (E: 57.4)

· German Final Services PMI (E: 55.0)

· Euro-zone Final Services PMI (E: 54.8)

· U.K. Final Services PMI (E: 60.9)

· Canadian Trade Balance (E: $2.9bln)

· U.S. Final Services PMI (E: 58.6)

· U.S. ISM Services PMI (E: 58.9)