Themes

• General mood is “risk off”
• Currency markets quiet as traders take stock of recent movements
• Gold prices rise, oil dips back slightly

What’s Moving

Currencies were largely quiet overnight, with most of the majors trading familiar ranges as the market continues to take a breath after the recent volatility.

USD bulls did manage to reenter the market slightly, supported by the fall in the oil price, which is helping slightly temper inflationary pressures. Oil prices fell after private oil survey data showed a small draw in crude oil inventories.

Gold remained strong and traded to a two-week high.

Thoughts

Expect yet another quiet session in Asia today, with the lack of clear direction overnight, combining with a real dearth of local data today expected to see continued local position adjustment.

Data today sees little more than Australian Westpac Consumer Sentiment. 

Pivot Points