Markets:
- Gold down $6 to $1687
- WTI crude oil down 82-cents to $91.84
- S&P 500 futures down 18 points or 0.5%
- USD leads, AUD lags
China returned from a week long holiday but Japanese markets were closed for Sports Day. The week bridge attack in Crimea and the soft China PMI dominated the news flow and there was also some follow-through from the solid non-farm payrolls report on Friday.
The initial opening reaction was negative with the US dollar strengthening and US equity futures falling 0.9%. There was some improvment as China reopened in a decent fashion but that optimism slowly faded and AUD/USD is near the lows of the day, down 20 pips.
USD/JPY was notable as it pushed to a post-intervention high of 145.66 before quickly backing off to 145.35 and then rising to 145.47. Every pip closer to the intervention high of 145.90 is a dangerous step.
Overall, the negative mood has settled in and US trading will be thinned by a semi-holiday on Monday (partiuclarly in bonds). The calendar is light everywhere but there are signs of some life in the market.
