A$ Underperforms, Modest Cross Asset Support For The USD

The early impetus was for USD strength, although this hasn't been a great deal of follow through demand. The BBDXY sits just above NY closing levels from Friday, last in the 1247/48 range. The A$ is the weakest performer, down 0.20% at this stage, last sitting in the 0.6755/60 region. We are up slightly from session lows near 0.6740.

• A$ weakness reflected the conservative 'around 5%' target for China growth announced yesterday. Early trends in commodity prices are weaker, copper off 0.3%, iron ore down 1$ to $124/ton, oil is also softer.
• In the cross asset space, US yields are down slightly from session highs. We opened firmer following weekend comments from San Francisco President Daly around the higher for longer theme. The 2yr yield is back to 4.85%, after opening above 4.86%. US equity futures are in the red, but away from worst levels.
• On the data front, NZ Q4 building work fell -1.6% q/q, after a revised 5.3% gain in Q3. ANZ Feb commodity prices rebounded, up 1.3% (-0.9% prior). In Australia, Melbourne Institute Inflation expectations eased to 0.4% m/m, bringing the y/y pace to 6.3% from 6.4%.
• NZD/USD has outperformed the A$ at the margins, just under 0.6220 last. Other pairs are within recent ranges, with USD/JPY close to NY closing levels from last week, near 135.90.
• The data calendar is devoid of major risks for the rest of the Asia Pac session.