Australian Dollar Corrects Higher, US Dollar Consolidates in Asia

Talking Points

• US Dollar Consolidates in Asia, Australian Dollar Underperforms
• French Bill Auction Highlights Bare-Bones European Calendar
• S&P 500 Index Futures Point to Neutral Risk Sentiment Trends

The trading week began on a quiet note, with the US Dollar little-changed against its top counterparts. The Australian Dollar narrowly outperformed in what appeared to be a correction after a Treasury report released on Friday stoked intervention fears and sparked aggressive selling.

Muted conditions may carry forward into the coming hours. The European and US economic calendars offer a pittance of low-level event risk and S&P 500 stock index futures are trading flat, offering no clear guidance on the risk appetite front.

In the absence of larger catalysts, a French bill auction may prove to be the most market-moving item on the docket. Paris is scheduled to sell €7 billion in 3-, 6- and 12-month paper. Traders will look to average yield and bid-to-cover readings to gauge the degree of Eurozone sovereign stress.

Asia Session: What Happened

Euro Session: What to Expect

Critical Levels

--- Written by Ilya Spivak, Currency Strategist for Dailyfx.com

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