Defensive Flows Take Hold In Asia, Orr's Warning Undermines Kiwi

Coronavirus worry kept riskier FX in check, as Japan and the U.S. reported new daily records of infections Thursday, while a number of central bank heads warned against premature optimism. The yen topped the G10 scoreboard as participants sought a safe haven. Lingering concerns over the deadlocked fiscal talks and political transition in the U.S. helped undermine risk appetite.

• NZD led commodity FX lower as a new community transmission of Covid-19 was found in Auckland and RBNZ Gov Orr joined other central bankers in reminding that the economic recovery is a "big if". The Governor cited the new infection as a pointing to continued uncertainty and noted that the last MPS was based on a "very bold" assumption that New Zealand's will re-open by 2022.
• Focus today turns to EZ trade balance & flash GDP, final French CPI, flash U.S. U. of Mich. Survey. Central bank speaker slate includes Fed's Williams & Bullard, ECB's Rehn, de Cos & Weidmann and BoE's Bailey, Cunliffe & Tenreyro.