Themes

· General mood is “risk off”

· Japanese Tokyo Core CPI at 1.9% from talk of 2.0%

· Australian Retail Sales as expected at +0.9%

What’s Moving

Currencies were well placed for a quiet session in Asia today, coming in on the back of major offshore incentives and ahead of the weekend and a U.S. holiday on Monday. The early going was very tentative and light volumes and tight ranges noted.

There was a little bit of buying of Euro, Sterling and the AUD mid-morning, but this move was also light and short-lived, as it was position adjustment and didn’t come on any news. Euro and Sterling are now holding near two-month highs.

The AUD showed little major reaction to the as-expected local retail Sales data.

Tonight, we are expecting another consolidationary session, with Europe not seeing any major data and the U.S. preparing for a long weekend. There is some key data out of the U.S. tonight and misses or beats may drive short-term price direction.

Data tonight includes:

· Euro-zone M3 Money Supply (E: 6.3%)

· U.S. Goods Trade Balance (E: -114.8bln)

· U.S. Personal Income (E: +0.5%)

· U.S. Personal Spending (E: +0.7%)

· U.S. Revised Michigan Consumer Sentiment (E: 59.1)