The US dollar was a little weaker as a combination of overhead technical resistance and weaker than expected manufacturing PMI combined to see traders take some money off the table.
Oil was down again but most markets, and traders, are waiting for non farm payrolls to be released tonight.
A quieter night for forex traders but stocks in the US closed the month down making it 6 of the last 7 days trade that the S&P 500 has closed in the red. Oil was thumped more than 3% lower, gold is testing support and its clear markets are getting a bit titchy about a paradigm shift if non-farms deliver a strong jobs number.
The US dollar regained its poise overnight as data and Fed vice chair Stanley Fischer's appearance suggests to forex traders that the chance of a September hike is higher than bond and stock traders are 'guesstimating'.
It's all about the fed again today. But last night's price action in bonds, stocks, and currency markets was about ignoring the Fed which appears to have a credibility problem after two years of warning of rate hikes has delivered just one move.
The markets reluctance to believe the fed will move is understandable. But dangerous.
The Fed has signaled that it back where we began the year and is contemplating a series of rate hikes sooner rather than later. That's driven bonds and the US dollar higher, put pressure on gold and oil and traders are wondering what stocks will do.
Traders have given themselves a free pass to do little until Janet Yellen's speech at Jackson Hole is out of the way this weekend. But markets are poised near important levels so the quiet may not last.
Oil, gold, base metals - especially copper, all fell overnight as traders found reasons to sell as we wait for Janet Yellen to speak at Jackson Hole. Stocks were lower as well and the chances of a volatility transition appear to be growing.
The US dollar bounced back knocking Euro, Sterling and the Aussie dollar lower. The Aussie is clearly struggling under the weight of topside expectations and further weakness seems more likely than not. Gold was also lower, oil is up but the rally could be ending.
On a night of US dollar weakness the Australian dollar lagged as the Euro headed toward 1.14 and Sterling roared higher after much stronger than expected retail sales data. Oil was higher again, stocks remained bid but calm, and gold is back above $1350 an ounce.
The US dollar failed to gain any benefit from warnings from Fed president's Dudley and Lockhart that the September meeting is live. USDJPY traded under 100 and the Aussie rose to 0.7750 at one point.
Oil's rally continued and gold was higher once again, though stocks fell.