DXY Marginally Lower Overnight

There was a distinct lack of notable headline catalysts observed in Asia-Pac hours, with a very modest downtick in U.S. Tsy yields helping the DXY away from its early session high, leaving the USD at the bottom of the G10 FX table.

• The latest round of monthly Chinese economic activity data beat expectations, although house price data came in on the softer side, offering an offset (and a deepening headwind for the troubled property developer sector). There was no direct reaction to the PBoC's move to inject CNY1tn via MLF, as it matched the amount of MLF that will mature this month (such a move was widely expected), although that may have aided the modest bid in the U.S. Tsy space. USD/CNH was pretty steady, with the CFETS RMB measure grinding towards its all-time high, while the PBoC's USD/CNY mid-point fixing was in line with broader expectations.
• USD/TRY registered another fresh all-time high after crossing above the TRY10.00 mark on Friday, with the potential for heightened cross-border tensions between Turkey & Syria, as well as continued worry re: looser CBRT policy, weighing on the TRY.
• Participants are already rolling their focus to the late Monday call between U.S. President Biden & Chinese counterpart Xi, although a White House official has told CNBC that the meeting "is about setting the terms of an effective competition where we are in the position to defend our values and interests and those of our allies and partners." As a result, most see little room for any real positive developments. Further afield BoE comments (Bailey & Haskel) & ECB speak (de Guindos) will draw attention on Monday.