BBDXY A Touch Higher, USD/JPY Look Above Y150 Quickly Unwinds

The USD leant on the move higher in U.S. Tsy yields during Asia-Pac hours, although the lack of meaningful escalation in the Israel-Hamas conflict seemingly provided some counter.

• Even with oil prices lower, the commodity $-bloc finds itself at the top of the G10 FX performance table, although moves remain modest.
• Continued, gradual thawing in Sino-Aussie relations ahead of a leadership summit probably helped support the AUD.
• Note that New Zealand was closed for a public holiday on Monday, with the same true in Hong Kong.
• As a result, Citi’s trading desk noted that overall interbank FX volumes were 40% below their 30-day average in Asia hours.
• USD/JPY made a brief showing above Y150 on the lack of meaningful escalation in the Middle East, but the move came in the very early hours of the Asia trading session, with liquidity even thinner than usual owing to the NZ holiday.
• The continued threat of intervention and the latest BoJ YCC sources piece will have helped limit the move. Still, the technical outlook in the pair remains bullish, resistance sits at Y150.16, while support comes in at Y149.08, the 20-Day EMA.
• The global docket is thin on Monday, with U.S. regional Fed survey data and Eurozone consumer confidence readings providing the highlights.