EQUITIES: Estoxx put seller

TYM3 deals at 115-27, +0-01+, with a narrow 0-04+ range observed on volume of ~49k.

• Cash tsys sit ~3bps richer across the major benchmarks.
• Asia-Pac participants faded Friday's post-NFP cheapening, perhaps focusing on the lower than expected average hourly earnings.
• The latest Sino-Taiwan tensions, as China simulated precision strikes on Taiwan during military drills over the weekend, also added a layer of support.
• The early richening held for the remainder of the session as tsys traded in narrow ranges with little follow through on moves.
• Fed dated OIS price ~18bp hike into the May meeting with the terminal rate at 5%. There are now ~70bps of cuts in 2023.
• There is a thin data calendar in Europe today, further out US Wholesale Inventories and Fedspeak from NY Fed President Williams provide the highlight on Monday.

NZD/USD prints at $0.6240/45, ~0.1% softer today.

• The pair has fallen below its 20-Day EMA in light holiday volumes, a narrow 20 pip range has been observed thus far.
• AUD/NZD is little changed, the cross has held below the $1.07 handle after breaking below last week.
• The domestic markets remain closed for the remainder of the session. Wider swings in risk sentiment will be the main driver in NZD.

The AUDUSD is down 0.2% to 0.6660 in light trading. It reached a low of 0.6656 before a high of 0.6682. The USD index is up slightly in APAC trading so far.

• In terms of the major crosses, Aussie is up 0.2% against the yen to 88.31 and +0.1% versus the kiwi to 1.068. AUDEUR is down 0.1% to 0.6111 and AUDGBP flat at 0.5365.
• Australia, NZ and HK are closed today but the Nikkei is up 0.4%, the KOSPI +1% and the CSI +0.2% higher. WTI is trading sideways and is around $80.70/bbl. Copper prices are down 0.1% and iron ore is just below $118/t.
• On Tuesday, Westpac’s April consumer confidence data and the March NAB business survey are released. They’re both likely to be watched closely given the RBA’s increased data dependence.