The Traderszone Network

The impact of Donald Trump’s plan on global demand was likely to be tiny, making the rally “too much, too fast,” Goldman says.

Japanese data:
Industrial Production for September m/m (final): +0.6%
– preliminary reading was 0.0%
Industrial Production for September y/y: +1.5%
– preliminary 0.9%
Capacity Utilization m/m for September: -2.0%

From George Saravelos, Strategist at Deutsche Bank
We have been for a long time but scaled back our confidence levels this year as the Fed turned dovish and the ECB ran out of easing options. The Trump victory has changed things.

In what appears to be yet another effort to spook shorts out of speculative positions in offshore Yuan, China appears to have tamped down its liquidity spigot driving overnight HIBOR rates up a shocking 194bps to 3.53% – the highest in over a month. The spread between offshore and onshore yuan has collapsed, even as the Yuan plunges to to its weakest against the dollar since September 2009.

As Yuan hits its post-leg record lows, it seems each streak of selling is met with a kneejerk liquidity plunge in money markets…

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Asian equity markets were mixed early Monday, with Japan’s Nikkei outperforming regional markets following stronger-than-expected economic data and a weaker yen.
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A piece on Bloomberg looking at the rebound in commodity prices and the relative underperformance of the Australian dollar
That’ll provide and underpinning for the AUD as the USD strengthens.

There is more uncertainty coming to a more fragile and less firmly anchored market.