Themes

• General mood is “risk off”
• RBA’s Lowe: Its OK to run the risk of +3% inflation
• Quiet end to the week expected

What’s Moving

A quiet end to the week in Asia today with players largely consolidating overnight moves within inside ranges after the whip-saw action on the USD overnight amid stronger than expected CPI numbers. The Japanese holiday today certainly didn’t help with the activity.

RBA Governor Lowe hit the tapes, dovish as expected. He noted that he was not concerned about inflation running at greater than 3% and that there was no evidence that the economy was overstimulated at the moment. These comments weighed on the AUD.

Tonight doesn’t hold a great deal of market moving news and events and we are expecting a quiet whimper into the end of the week.

Data tonight sees:

• German CPI (E: +0.4%)
• U.K. GDP (E: -0.5%)
• Swiss CPI (E: 0.0%)
• U.S. Preliminary Michigan Sentiment (E: 67.2)