Themes

· General mood is “risk off”

· Fed’s Bostic: 50bps is a pretty aggressive move, Fed can remain at that pace

· NY Fed lowers one year inflation expectations to 6.3% from 6.6%

What’s Moving

U.S. equities were the story of the day overnight, with all major indexes falling significantly as the recent selling kicked up a notch. This saw some movement into U.S. bonds, which saw yields fall slightly (buying of bonds causes yields to fall, selling of bonds causes yields to rise).

In the currency market the Dollar remained well bid, posting strong gains against the Swiss Franc, CAD, AUD, and NZD. The Commodity currencies saw extra weakness due to a fall in energy prices and commodities.

The AUD is opening in Asia today at a near two-year low.

Thoughts

With little in the way of key local data today in Asia, expect consolidation locally after the wide overnight swings. Risk is for consolidation of overnight Dollar strength.

Data today sees:

· Japanese Household Spending (E: -3.2%), and

· Australian NAB Business Confidence (Last: 16)