Early Yen Strength Has No Follow Through, Caixin PMI Out Later

It has been a fairly muted start for the majors against the USD in the first trading session of 2024. Japan and NZ markets are out, which may be impacting liquidity to a degree.

• The BBDXY was last a touch above end Friday levels from last week, tracking at 1213.15. Cross asset signals have been muted, with US equity futures up a touch, while US Tsy futures sit near Friday session lows.
• USD/JPY got to lows of 140.82 earlier, as markets reacted to yesterday's earthquake/tsunami, but there was no follow through. The pair is back to 141.10/15 in latest dealings, around 0.15% weaker in yen terms. CHF is off nearly 0.20%, although liquidity will be lighter for this pair.
• Both AUD and NZD are also down, but overall moves have been modest. AUD/USD last near 0.6805/10, while NZD is close to 0.6315.
• Still to come is the China Caixin Manufacturing PMI. The market expects 50.3, versus 50.7 prior. Recall the official PMIs printed on Sunday, with the manufacturing measure surprising on the downside.