Themes

• General mood is “risk off”
• HKMA hikes Hong Kong rates 25bps after overnight Fed rate hike
• Australian Employment better than expected, Unemployment rate dips to 4.0%
• Japanese Core Machinery Orders -2.0%

What’s Moving

Another quiet day in Asia today, with local players largely digesting the news of the overnight rate hike in the U.S. The rate hike was as-expected and fits in with the current risk off mood, so no need to adjust positions too much.

Australian Employment printed better than expected, which prompted a small bid on the AUD, while Sterling is also grinding higher in Asia ahead of tonight’s U.K. rate announcement.

The key event tonight is the U.K. MPC rate announcement, with the market expecting a hike of 25bps. After this, the U.S. Initial Claims numbers will be key for determining trade direction.

Data tonight includes:

• Swiss Trade Balance (E: 4.2bln)
• Euro-zone final CPI (E: 5.8%)
• U.S. Initial Claims (E: 221k)