Continued focus on central bank response to...>

FOREX: Continued focus on central bank response to the coronavirus situation is

evident, after the Fed delivered a 50bp rate cut y'day in a rare, inter-meeting

move. Policymakers from the Asia-Pac region have taken the baton in talking up

readiness to support the economy. The session started with some risk aversion

creeping in, but risk-on flows resumed as early Super Tuesday results started to

roll in, favouring Joe Biden. The yen lags its G10 peers as the Nikkei 225 has

turned green, with a BBG trader source pointing to short-covering in USD/JPY.

The Aussie tops the pile, boosted by above-forecast Q4 GDP data out of Oz.

- USD/Asia opened on the back foot, playing catch-up to dollar sales in the wake

of the Fed's move. IDR & KRW are the best performers in the space, with BoK

off'ls holding meetings over y'da's rate cut from their U.S. colleagues. BI said

it stands ready to stabilise IDR & doesn't want "huge swings" in the currency.

Elsewhere, HKMA mimicked the Fed & cut its base rate to 1.50% from 2.00%.  

- On the radar today: BoC MonPol decision, Italian GDP, German/EZ retail sales

and global services PMI readings, including China's Caixin tally & U.S.

Non-M'fing. BoE's Bailey & Broadbent, as well as Fed's Bullard will speak.