A.M. Update

Good morning.

The two events of note overnight were the RBA (Australia Central Bank) surprise non-rate cut, no action was taken despite many economists having predicted a rate cut. There's also a HFT mini- scandal as it looks like the decision's announcement was front run in $AUD by about 30 seconds.

Additionally, it looks like Japan, as reported about a month or so ago, may have to ease up on easing and possibly wind down QE. Abe Advisor Etsuro Honda warned against the economy overheating after Japanese base pay saw the largest increase in more than 10 years. The possibility of an all-out halt of Japanese/BOJ QE sent JGB's lower (along with a weak auction of JGBs).

Overnight Index Futures did slide as it looked as if they might earlier in the night on some nasty divergences posted in last night's Daily Wrap. Essentially the last hour and a half's parabolic rise in the market yesterday has been retraced as of now.

 This is a 1 min chart of SPY from yesterday, the current pre-market bid/ask is at the red trendline, retracing just about all of the last hour and a half parabolic move to the upside, I never trust these parabolic moves.

 As for ES, a steady decline all night and 3C is currently in line with the weakness.

The USDX has hit 12 year highs this morning, but it hasn't moved the USD/JPY...

USD/PY has lost ground on the news from Abe's advisor that QE may have to be ended entirely.

I'll be back with the Opening Update in just a few minutes.