In the G10 currencies today, CHF and JPY are the top gainers up 0.46% and 0.25% versus the dollar, respectively. CAD, NOK and AUD are among the weakest currencies. In our view, nothing much is going to happen before US CPI release on Friday where a good print is enough to lift USD temporarily. In the equities space, the Nikkei 225 has closed 1.29% down, at 19739 and the European equities have also opened lower with FTSE down 0.05%, DAX down 0.8%, and CAC down 0.8%. In the rates market, the EU and US 10-year yields are consolidating at 0.46% and 2.25%, respectively. In the energy space, the WTI front month is weakening slightly, now trading at $49.02, despite API crude inventory data showing another sharp draw of 7.839M. The EIA crude inventory data is due at 1430 GMT today and confirming API data may lead to some short-term rise in oil.
Overnight, the Chinese CPI came in at 1.4% softer than the 1.5% expected. Also, the Westpac Australian Consumer confidence has come in at -1.2% versus 0.4% previously. In terms of data, the RBNZ rates decision at 0900 GMT is the only significant event for the rest of the day.