US equity markets were notably flat in yesterday’s session as investors begin to consolidate their holdings in preparation for the upcoming key data releases which will likely determine the future direction of all assets. The DJIA closed lower by 0.24%, the Nasdaq 100 lost 0.24% while the S&P500 closed lower by 0.32%. Asian equity markets shrugged off Wall Street’s loses to trade mixed with the ASX 200 gaining 0.3%, the Hang Seng gaining 0.4% while the Nikkei lost 0.2% as a stronger Yen weighed on exporters.
In Fx, early trade saw the USD weakened across the board as the USD Index, a measure of the strength of the USD against a basket of currencies, dropped to 101.20 before we saw USD bulls resurface to try and reignite the uptrend, managing to post slight gains across the board as we saw the INDEX pop back up above 101.70. The AUD, experienced some volatility overnight as it surged on a hawkish RBA meeting, which stated that it sees an improved global economy which is likely to filter through to the Australian economy, in addition, the RBA refrained from its usual rhetoric that the AUD was overvalued, which further fueled the AUD bulls. The GBP was hammered lower yesterday as we saw strong selling pressure form the get go with bears managing to drive the pair over 70 pips lower form its open.
In commodities, gold remained subdued after being sold off aggressively last week, we are currently seeing the precious metal at the 1225 level as bulls and bears fight for control. Crude oil popped higher yesterday as OPEC members reiterate their commitment to cutting production.
Going forward, we have a host of economic data for various asset being released. Better than expected releases will see the respective assets appreciate while worse than expected release will see the respective assets depreciate.