Antipodeans Go Offered Despite Firmer Yuan, USD/JPY Passes Y108 Mark

The Antipodeans ignored the combination of firmer crude oil prices and yuan appreciation. They ground lower alongside NOK, with both AUD/USD and NZD/USD printing worst levels in a month, as they established themselves below their respective 50-DMAs. The kiwi failed to find solace in NZ cabinet's decision to lower Covid-19 alert levels in Auckland and the rest of the country and the withdrawal of an earlier tsunami warning.

• Antipodean currencies extended losses after the RBNZ ramped up its weekly bond purchases, despite gradual tapering observed over the recent months. However, moves in the FX space may have been driven by a round of broader demand for USD seen around that time.
• USD/JPY continued to gain altitude and crossed above the Y108.00 mark for the first time since Jul 1, as the DXY edged higher. FinMin Aso refused to comment on FX levels, while BoJ Gov Kuroda said that the gov't is in charge of FX policy. Elsewhere, Kuroda pushed back against the idea of expanding the long-term yield band.
• The redback picked up a bid and USD/CNH faltered, with all eyes on the annual NPC meeting. China has set a relatively conservative 2021 GDP goal of above 6%, confounding the expectations of many who thought the growth target would be abandoned, and pledged to keep up its proactive fiscal policy. BBG CFETS RMB tracker rose to the highest levels since mid-2018.
• U.S. NFP report headlines the data docket today, with U.S., French & Canadian trade reports, German factory orders & Italian retail sales also due. Fed's Bostic & BoE's Haskel are set to speak.