Defensive moves resumed as Asia traders got in, with U.S. e-mini futures and crude oil losing ground. Riskier assets then gently bounced off lows but generally still trade on a softer footing. This also applied to high-beta currencies, before the Antipodeans posted another leg lower, in the absence of any notable catalysts.
- Worth being cautious with pinning the moderation in risk-off dynamic on any specific headline, but the brief recovery in sentiment seemed timed with the news that all new COVID-19 cases in Shanghai have been found in quarantined areas.
- They yen still sits atop the G10 pile, but off earlier highs, with Nikkei 225 finding poise in defiance of a negative lead from Wall Street. The likes of CHF and USD are also capitalising on their safe-haven status.
- The Antipodeans underperform in G10 FX space, hitting fresh session lows in the past few minutes. AUD/USD is testing the $0.6900 mark and NZD/USD is challenging $0.6265, both are yet to reach yesterday's lows.
- Today's data highlights include a suite of PMI readings from across the world and U.S. jobless claims. Fed Chair Powell will testify on the Hill, while ECB's Nagel & Villeroy are set to deliver speeches. Norges Bank will announce its rate decision.