- Chinese markets are closed for the next two sessions to market victory day, allowing the markets to focus on more traditional data sets.
- VIX (Volatility Index) is down -17% from yesterday as global stocks and US Dollar rallied, demonstrating cautious optimism from overnight data.
- ADP employment came in below target and saw a lower revision from previous month; however markets took a bullish sign from productivity, which was up from previous month.
- Canadian Dollar was supported overnight by higher oil prices.
- AUDUSD, after spiking below 70c yetserday, managed to climb above this key level as it took advantage of the mild risk-on session.
- EURUSD continues to trade cautiously as it awaits ECB press conference tonight and Nonfarm payroll tomorrow. 1.120 could be a pivotal level to watch for the bulls or bears going into the press conference as traders wait to hear if there will be any changes to the QE program.
NYLON HANDOVER: Cautious optimism overnight
A more traditional session saw volatility slightly lower as China fears appear on the backburner. With Chinese markets closed for the remainder of the week, ECB press conference and Nonfarm payroll will be the key drivers for Friday's close.