Themes

• General mood is “risk off”
• U.S. Non-Farm Payrolls smashes estimates at 678k from talk of 407k
• Euro hits a near two-year low

What’s Moving

U.S. markets opened to the news that Russia was attacking a large nuclear power plant in the Ukraine with rockets, which put a big risk off bias into the day. Then came a significantly better than expected Non-Farm Payrolls report, which blew expectations out of the water.

By the end of the session, the Euro was the weakest of the majors, while the continued gain in oil prices saw the AUD and NZD benefit significantly. Sterling was also heavy over the session, while safe haven buying of the Yen and CHF supported those currencies.

Thoughts

After the wild trade on Friday, continued concerns about the Ukraine and with most locals coming into the week fairly flat, we expect some Dollar strength in Asia today. The data calendar isn’t impressive which should see relatively orderly local trade today.

Local data today sees:

• Australian Job Advertisements (-0.3% last)  
• Chinese Trade Balance (E: 450bln)

Pivot Points