Headlines:
Markets:
- AUD leads, JPY lags on the day
- European equities mostly higher; S&P 500 futures down 0.1%
- US 10-year yields up 1 bps to 3.50%
- Gold up 0.4% to $1,975.93
- WTI crude up 6.5% to $80.66
- Bitcoin down 0.5% to $28,243
The session started off with the dollar in a decent spot, holding gains across the board carried over from Asia. But as bond yields come down a little and equities pick up a touch, we are seeing the dollar lose ground and stumble lower now.
Tech stocks are the laggard and that is leaving a bit of a balancing act ahead of the Wall Street open later. Nasdaq futures are lower, putting a bit of a drag on S&P 500 futures, but Dow futures are modestly higher on the day.
The big story in markets though came from the weekend, in which we got a surprise announcement from the Gulf States – saying that they will cut oil production significantly. That led to a rip higher in oil prices, with WTI crude opening with a gap above $80 today.
There was a brief retreat below the key level but as we look towards US trading now, prices are heating up again to $80.60 levels roughly now.
In FX, the dollar gave up gains on the session with EUR/USD running up from 1.0790 to 1.0875 while USD/JPY dropped from 133.75 to just below 133.00 currently amid a retreat from the highs for bond yields.
USD/CAD is a decent gainer, moving down from 1.3530 earlier in the session to 1.3450 now as oil gains gather pace.
But it is the aussie that is leading the charge, with AUD/USD now up over 1% to 0.6760 from around 0.6660 earlier as traders build on the positive risk momentum and also some balanced thinking ahead of the RBA tomorrow.