Themes

• General mood is “risk off”
• U.S. Flash Manufacturing (57.5) and Services (56.7) PMI stronger than expected
• Russian “peacekeeping” tanks continue to roll into the Ukraine

What’s Moving

The Russian Parliament rubber stamped the move into the Ukraine last night, which prompted a round of condemnation and sanctions. Sanctions against Russia have now been announced by the U.S., Euro-zone, the U.K. and Canada.

This prompted some USD buying, which was further supported later in the day by hawkish comments from Fed member Bostic.

In conclusion, while equities were weaker across the board, currency players are taking a way and see approach.

Thoughts

Should be a quiet session in Asia today, with h market continuing to eye any movements in the Ukraine. Japan is also out on holidays today, which should further reduce volumes.

Local data and events today sees:

• RBNZ Rate Announcement (E: 25bps hike)
• Australian Wage Price Index (E: +0.7%)   

Pivot Points