Themes

· General mood is “risk off”

· Australian AIG Services Index at 57.8

· Japanese Tokyo Core CPI higher than expected at 1.9% from talk of 1.8%

What’s Moving

Most players came to their desks in Asia this morning not expecting much ahead of tonight’s U.S. Non-Farm Payrolls data. They weren’t disappointed. It was a quiet session with all o the majors holding tight ranges.

The lack of major local data saw little trading incentive and what data there was, was shrugged off.

The RBA Monetary Policy Statement was largely as expected. The Reserve Bank noted that further rate hikes would be needed and that a “more normal” official interest rate would be 2.5%. The RBA also noted that inflation pressures are broadening due to supply chain bottlenecks and strong demand.

For tonight, expect a quiet session ahead o U.S. Non-Farm Payrolls to round out the week.

Data tonight includes:

· Swiss Unemployment (E: 2.2%)

· German Industrial Production (E: -1.3%)

· Canadian Unemployment Rate (E: 5.2%)

· U.S. Non-Farm Payrolls (E: 390k)