Themes

• General mood is “risk on”
• Currencies consolidate overnight movements in Asia today
• Canada to announce on rates tonight, with no change expected

What’s Moving

As we expected, another quiet session in Asia today, with some short covering on USD positions helping the market hold within overnight ranges. With little data in Asia today it was never going to be a highly volatile day.

The AUD has outperformed the majors today with light buying across the day helping to keep the Aussie supported. Sterling is also catching a light bid into the European open.

For tonight, expect more of the same. The release of U.S. Crude Oil Inventories could prompt some action on oil, while Canada will also announce on rates, with no change expected.

The market started to foster a “risk on” posture overnight and there is risk for that to continue tonight. Be warry of USD longs and be careful of adding to positions at this stage o the cycle.