The tennis match of one day up one day down we have been seeing across many markets lately continues in earnest. The USD has been on the rebound this morning after yesterday’s selloff was contained by its 50-day moving average. Meanwhile, gold and oil, two markets that took off and broke out yesterday have given back some but not all of their gains in normal backing and filling. Meanwhile, European indices have been rallying this morning, playing catch up after missing out on yesterday’s US market gains and responding favourably to generally in line to positive service PMI reports which build on yesterday’s US figures. In paper currencies today, continental currencies have taken the biggest hit in the face of a rebounding greenback, particularly EUR which had benefitted the most from the recent USD correction, NOK with oil down again and SEK following mixed Swedish economic reports which saw industrial production really drop. On the other hand, AUD is down the least today after the RBA held interest rates steady. AUD had a relief rally after the RBA statement didn’t take any new potshots at the dollar. GBP is also among the relative outperformers after UK service PMI confirmed a robust island economy. It’s a quieter day for news out of the US so we may see markets continue to digest all the big announcements of the last week and try to figure out what it all means for US interest rates heading into tomorrow’s FOMC minutes. Corporate News There have been no major corporate announcements this morning. Economic News Economic reports released overnight and this morning include: Australia interest rate 2.25% no change as expected India repurchase rate 7.50% no change as expected Sweden industrial production (3.9%) vs street (1.5%) Sweden service production 3.1% vs street 2.7% Eurozone producer prices (2.8%) vs street (2.9%) Australia retail sales 0.7% vs street 0.4% Upcoming Service PMI reports: Australia 50.2 vs previous 51.7 Sweden 57.2 vs previous 56.7 Spain 57.3 vs previous 56.2 Italy 51.6 vs street 51.0 France 52.4 vs street 52.8 Germany 55.4 vs street 55.3 Eurozone 54.2 vs street 54.3 UK 58.9 vs street 57.0 Economic reports due later today include: There are no major announcements for the US or Canada scheduled for Tuesday.