Initial impressions of the overnight action indicate that today we are likely to see stronger equity markets in Asia on the back of the moves in the US overnight which should lead to an unwinding of the risk aversion trades we saw placed on Friday and Monday. I am not convinced this will be the case this afternoon when the UK joins us.
The AUD/USD has retraced some of its lost ground and the level to watch is now 0.7150 which is the level we broke down from a few days back, so expect some stops to be lingering above that level.
