Yesterday saw US equities trend higher throughout the day with the DJIA closing above the 18000 handle as it posted gains of 0.37% on the day. The S&P 500 gained 0.33% while the NASDAQ finished up 0.17%.

In FX the USD continued to be punished through out yesterday before finding some solace overnight. Yesterday’s big movers were the USDCAD, EURUSD and USDCHF which all moved higher against the green back. Most notable moves overnight came from the NZD which climbed above 0.7100 level, posting a new yearly high, after the RBNZ left rates unchanged at 2.25% and RBNZ Governor Wheeler struck a hawkish tone, stating that further easing is not needed at this stage. The news saw the AUDUSD also go bid as it followed its comrade`s lead, but the surge was short lived as bears re-entered to take the 0.7500 level, driving prices lower at what seems to be a key resistance point.

Commodities where bid thought yesterday as gold drove deeper into recovery from last month’s losses, peaking at 1266 before selling pressure re-entered the market on the back of broader USD strength. Crude oil saw the release of US Crude inventories oil which showed a slightly bigger than expected drawdown (-3226K vs -3000K) and an increase of production output to 0.114%, which netted off the effects of the figures as the USD shrugged the data off and continued to climb to new multi month highs.

Today’s key risk events are as follows:


  • ECB President Draghi due to speak at the Brussels economic forum


  • Good Trade Balance expected at -11.1B


  • Unemployment Claims expected at 269K


  • NHPI m/m expected at 0.3%
  • BOC Gov Poloz to hold press conference about the financial systems review.