Calm Asia Session, USD Strength Continues To Pummel EMFX

Another quiet session for G10 FX with markets welcoming U.S. Pres Trump pledge to work on a "smooth, orderly and seamless transition of power." The greenback drew some support for a continued softening of U.S. Tsys, with 10-Year yield hitting its best levels in almost 10 months. Price action across the G10 FX space was sedate, with the limited data docket providing no notable catalysts.

• NZD firmed up a tad as a BBG trader source cited purchases against AUD after Queensland imposed a three-day lockdown in Brisbane. AUD/NZD is on course for its first weekly loss in five weeks, which occurs after the rejection of resistance from the 61.8% recovery of the 2018 - 2020 sell-off on Monday.
• Dollar strength continued to jolt EMFX, with IDR and KRW becoming the main victims. USD/IDR rallied past the IDR14,000 mark last breached when it gapped lower on Monday. USD/KRW topped out just shy of the KRW1,100 mark but stopped short of attacking the level.
• The redback outperformed its peers from the Asia EM basket and the USD, even as the PBOC fixed USD/CNY at 6.4708, around 100 pips higher than yesterday (roughly in line with expectations). The bank injected CNY 5bn of liquidity, equating to a net drain of CNY 505bn this week - the biggest since October.
• Focus moves to U.S. NFP report, German, French & Norwegian industrial output figures, German & French trade data, Canadian & EZ jobs reports as well as comments from Fed Vice Chair Clarida.