Antipodeans Offered, AUD/NZD Extends Surge

The Antipodeans sold off, as NZD remained fragile owing to a familiar combination of domestic MonPol/coronavirus matters, while AUD was hurt by Chinese MOFCOM's decision to launch an anti-dumping probe into Australian wine exports. The RBA offered little new in minutes from its latest MonPol meeting, albeit the remark that Australia's economic recovery could be slower than expected may have further limited the Aussie.

• That being said, AUD/NZD extended its impressive bullish run, consolidating above the NZ$1.1000 mark breached yesterday and printing fresh two-year highs.
• JPY was the best G10 performer, its rally was sparked by demand into the Tokyo fix, which sapped strength from USD. The rate has already more than wiped out last week's gains.
• USD lost ground against most of its G10 peers, amid a continued stalemate re: U.S. fiscal matters. DXY narrowed in on its worst levels since 2018.
• USD/CNH ground lower, ebbing past the recent multi-month lows. Little in the way of local headline flow to drive the move, which suggests that USD weakness did most of the work here.
• USD/IDR pushed higher, threatening to penetrate its 100-DMA, ahead of tomorrow's BI MonPol decision.
• Focus moves to U.S. housing starts & building permits and comments from ECB Vice Pres de Guindos.