AUD Wounded By Collateral Damage From China's Commodity Talk

The Antipodeans cemented their underperformance after China's NDRC warned it will take a "zero tolerance" approach toward violations in spot and futures commodity markets, sending industrial metals tumbling. The statement by Chinese authorities represented another step in Beijing's attempts to reign in the recent rally in commodity prices. Resultant iron ore weakness undermined AUD, while NZD faltered in tandem with its Antipodean cousin, despite a beat in domestic quarterly retail sales print.

• JPY led gains in G10 pack amid sparse news flow and little in the way of notable catalysts from over the weekend. Local press reported that the gov't is planning to extend Covid-19 state of emergency in nine prefectures beyond May 31, possibly through Jun 20, which marks the expiry of emergency declaration in Osaka.
• The PBOC set the central USD/CNY mid-point at CNY6.4408, just 3 pips above sell-side estimates. USD/CNH lost some altitude, but remained within the confines of Friday's range. Over the weekend, PBOC Vice Gov Liu said that China's central bank will maintain yuan stability, while continuing to enhance the managed floating exchange rate system.
• Global data docket is light today, with comments from Brainard, Mester, George & Bostic as well as BoE's Bailey, Cunliffe, Haldane & Saunders eyed going forward.