Themes

· General mood is “risk off”

· Chinese data prints better than expected, little impact on trade

· RBA Minutes: will not increase the cash rate until inflation is within the 2%-3% target band

What’s Moving

Gold opened on the offer this morning, which in turn pressured the AUD in early trade. Adding to further pressure on the AUD were comments in the RBA Minutes that the board will not increase the cash rate until inflation is within the 2%-3% target band.

On the majors, it was a very quiet day, with little really going on after a largely news-free night overnight. Comments by Japanese Finance Minister Suzuki that FX stability is very important had little impact on dealings, despite the presumption that the Minister isn’t happy with recent Yen weakness.

Data tonight sees:

· U.K. Unemployment (E: 4.0%)

· Swiss PPI (E: 0.4%)

· Euro-zone Zew Index (E: 10.3)

· German Zew Index (E: 5.2)

· Euro-zone Industrial Production (E: 0.0%)

· U.S. PPI Headline (E: 1.0%); Core (E: 0.6%)

· U.S. Empire State Manufacturing Index (E: 6.5)