Themes

• General mood is “risk off”
• USD strength continues in overnight trade after Wednesday’s FOMC
• Commodity currencies feeling the brunt of the pain

What’s Moving

The Dollar found a strong bid in European trade overnight, following on from gains Wednesday after the FOMC meeting. This continued in New York trade, with the Dollar drifting stronger over the course of the day.

Best gains were against commodity currencies, while the Yen managed to claw back some of the losses into the close.

Gold and oil also posted new recent highs overnight on USD strength.

Thoughts

We are expecting consolidation of USD strength in local dealings today with the USD technically overbought on all indicators and pre-weekend squaring up expected to dominate trade.

Local data today sees:

• Japanese Tokyo Core CPI (E: +0.3%), and
• Australian PPI (E: +0.9%)

Pivot Points