Themes

· General mood is “risk off”

· Fed’s Williams: We need to get real rates back to zero

· US. Empire State Manufacturing Index -11.6 from talk of +17

What’s Moving

European trade was quiet overnight and New York opened to decent buying of U.S. Treasuries, which lowered U.S. rates (buying of bonds lowers rates), which pressured the Big Dollar over the course of the session.

Gains in gold and oil prompted further buying of commodity currencies, while a mixed session for U.S. equities provided little to no impetus on currencies.

Fed’s Williams made some hawkish comments, but they were in line with other Fed members.

Thoughts

Overnight Dollar weakness should see some bargain hunting in Asia today, although light trading is expected amid a lack of local data today.

The RBA will today release its minutes from last months meeting.