Antipodeans Remain On The Defensive

Antipodean currencies landed at the bottom of the G10 pile, as risk aversion rattled Asian equity markets. NZD was the worst performer across the G10 FX space, undermined by unfavourable technical backdrop. After falling past a trendline support and its 50-DMA, NZD/USD confirmed the formation of a double top pattern on Wednesday. The rate tested Wednesday's low in the Asia-Pac session, but struggled to make any headway beyond there, while NZD/JPY re-approached its 200-DMA.

• In Australia, Treasurer Frydenberg delivered a speech outlining the government's two-stage strategy to stimulate a jobs-led economic recovery. Separately, a trader source told BBG that AUD was pressured as funds repatriated dividends from Aussie companies.
• Elsewhere, a mild risk-off feel resulted in CHF outperformance, with the monetary policy decision from the SNB awaited today.
• USD/CNH extended losses in reaction to a stronger than expected PBoC fix. Worth noting however that it was the first fixing above the CNH6.8 mark since Sep 15. The rate pared losses later in the day.
• IDR led losses in Asian EM space, despite Bank Indonesia's continued attempts to stabilise the exchange rate via intervention in domestic NDF & FX spot markets.
• MYR was wounded after the re-open by lingering political uncertainty in Malaysia. PM Muhyiddin pushed back against opposition leader Anwar's assertion that the gov't lost control over parliamentary majority.
• KRW sold off as South Korean Vice FinMin warned against possible stock & FX market volatility, pledging efforts to stabilise financial markets if needed. He also attributed the recent appreciation in KRW to the yuan's rally.
• Central bank activity headlines today, with the Norges Bank, SNP, Banxico & CBRT due to deliver their MonPol decisions. The speaker slate is packed with numerous Fed speakers, including Chair Powell, as well as ECB's Lane, BoE's Bailey & Riksbank's Skingsley. U.S. initial jobless claims/new home sales and German Ifo Survey take focus on the data front.