The most important news overnight were coming from Australia and market’s expectation for BOJ.
Australian economy grew faster than exepected in Q2. It grew by of 1.2% yoy driven by business investment, household spending and a build-up in inventories. What more important it comes after a drop in Q1 GDP of 0.9% yoy. More here.
Here is one way to explain what has happened overnight in FX and Equity Markets in Asia. Note that everyone is now positioning for a BOJ intervention. Also, today’s release of the Beige Book should give more clues about the state of the US economy.
Everyone hears the conventional crowd wisdom that September is a tough month for trading. Here is some proof.