Greenback Firms On Rising US Yields

The USD is on the front foot in Asia as rising US Treasury Yields boost the greenback. Yen is the weakest performer in G-10 space at the margins.

• USD/JPY prints at ¥137.80/90, approaching upside resistance is at ¥137.95 high from 2 March and bull trigger. Early in the session weaker than expected trade balance and current account figures weighed on the Yen. JPY was a relative outperformer on Tuesday so today's move may reflect a partial reversal of the trend.
• Kiwi is also softer, NZD/USD is down ~0.2%. The pair has been pressured and registered a fresh YTD low at $0.6085 before marginally paring losses to sit a touch below $0.6100.
• AUD is marginally outperforming, AUD/USD registered its lowest level since early November before paring losses to sit a touch firmer. The next downside target is $0.6547 61.8% retracement Oct - Feb bull cycle. RBA Gov Lowe noted that this morning the RBA is getting closer to a pause but that the peak in rates hasn't been reached however there was little follow through and the losses were pared.
• AUD/NZD is ~0.3% firmer, the cross has recovered above the $1.08 handle recouping some of yesterday's losses.
• EUR and GBP sit ~0.1% softer as the greenback strength marginally weighs.
• Cross asset wise, 2 Year US Treasury Yields are at a cycle high (5.07%). US Equity futures are little changed. BBDXY is ~0.2% firmer.
• In Europe today we have final Eurozone GDP. Further out MBA Mortgage Applications, ADP Employment , Trade Balance and JOLTS Job Openings will cross. Elsewhere, Fed Chair Powell’s appears before the House Finance Committee.