Greenback Gains Into Month-End, Yuan Remains Buoyant

The greenback firmed during the final Asia-Pac session of the week, as musings surrounding U.S. Pres Biden's budget proposal took focus. Usual chatter about the impact of month-end flows also did the rounds, with the U.S. about to observe a long weekend. Headline flow in the Asia-Pac timezone failed to provide much in the way of notable catalysts.

• The yuan caught a bid, ignoring a softer than expected PBOC fix, which came in at CNY6.3858 (21 pips above sell-side estimate). BBG tracker of broader yuan strength against a basket of currencies extended gains to a new three-year high.
• NZD went offered across the board, losing its post-RBNZ shine and snapping a four-day winning streak. A hawkish surprise provided by the Reserve Bank on Wednesday has allowed the kiwi to become the best G10 performer this week.
• U.S. PCE takes centre stage today, on top of Chicago PMI survey, final UoM sentiment & inventories data. Elsewhere, GDP data from France & Sweden are also due. ECB's Villeroy speaks at an ACPR meeting.