All a bit of a damp squib after the RBA initially surprised with a 50 bps cut in Asia this morning. The move came despite marginally improved Chinese PMI data (although below expectations), but showed the RBA was taking a braver stance and this in turn may lead to a boost in confidence.

European holidays, together with Golden week in Asia have made trading largely directionless ahead of the US open.

AUD/USD fell back in early Europe to 1.0306 but is finding some support ahead of 1.0300, and there are exporters bids of better size sitting down at 1.0280/90, but the pair largely rangebound in a dour European session.

EUR/USD picked up on some early model demand from 1.3244 to 1.3279, but ran into some pretty solid offers, possibly of semi-official flavour as well as some medium size fund selling, before drifting back to 1.3250

USD/CHF challenged the 0.9050 level, which reportedly held SNB bids but failed to really break significantly lower touching 0.9045 before the EUR/USD fell back and the USD/CHF rose back to 0.9070. EUR/CHF was static in a 1.2011/15 range.

GBP/USD was steady through 1.6193-32, but got a kick lower from the poor PMI data, although the reading was hardly unexpected following poor recent PMI data elsewhere in Europe and currently sits around 1.6200 which holds an option expiry today.

USD/JPY was pushed down to 79.64 largely on AUD/JPY weight, but has found some reasonable support since with a rally to 79.89

Little else to report really with the FTSE up marginally around 0.25%,Gold off around $6 and WTI Crude down by around 50 cents