Greenback Creeps Higher

The greenback rocketed higher on Thursday as a weak auction sparked a sell-off in Treasuries, spiking yields and dragging USD higher. The move took a breather between time zones, but has resumed in early Asia.

• AUD/USD is 23 pips lower at 0.7850, while NZD/USD is around 21 pips lower. Australian data showed credit to businesses rose 0.2% in January, slightly below estimates.
• RBNZ Gov Orr spoke and noted that the MPC remains committed to providing prolonged monetary stimulus and will not be changing policy any time soon.
• JPY has been more resilient, USD/JPY up 5 pips at 106.26, data showed industrial output fell 5.3%, slightly less than expected, while retail sales were also slightly better than expectations. Tokyo CPI fell 0.3% Y/Y against an estimated 0.4% decline.
• USD/CNH briefly looked over 6.50 for the first time since January before dropping back, bulls looking for a break of the Jan 28 high at 6.5151. The PBOC fixed USD/CNH at 6.4713, just 5 pips above sell side estimates, which is well within range given the sizable moves in the pair earlier.