Themes

• General mood is “risk off”
• We had Bank holidays for most European countries yesterday
• AUDUSD went up after RBA hiked rate for 50 bps

What’s Moving

AUDUSD went up for around 70 pips after RBA hiked the cash rate for 50 bps, and sooner it dropped 80 pips in about 2 hours. Now AUDUSD is stable around a major resistance level at 0.7200.

XAUUSD went up and dollar index dipped in the Asian session indicated that the “risk off” mood may continue during the day.

Bond yields went higher during the Asian session, we should keep an eye on the stock indices during the US session, since the sentiment may send indices down further.

Data tonight includes:

• U.K. Final Services PMI
• Canadian Ivey PMI
• U.S. Consumer Credit
• Euro Sentix Investor Confidence