Greenback Goes Again

Cautious trade so far in Asia after some volatility on Thursday. The greenback went bid after following a speech from Fed Governor Powell that led participants to believe the Fed would not push back against the recent rise in yields. Some trepidation ahead of the US NFP print later on Friday.

• AUD and NZD are bottom of the G10 pile in early Asia, both shedding around 30 pips. New Zealand issued a tsunami warning for coastal areas on the Northern Island, asking residents of Northland, Bay of Plenty and Great Barrier to "leave immediately for higher ground" or as far inland as possible. The warning came after a strong magnitude 8 earthquake was detected in the South Pacific Ocean.
• JPY has gained a handful of pips after losing ground on Thursday, USD/JPY has retreated from the 108.00 handle with talk of barriers at the level. Around $1.1bn in puts expire at 108.00 tomorrow. Elsewhere BoJ Governor Kuroda said risks to the economy are to the downside, and there is a need to keep the yield curve low.
• Comments started filtering out from China's Two Sessions, the government has set a growth target of 6% for 2021, contrary to expectations that the growth target may be eschewed amid economic uncertainty. The government also said it would promote US trade ties based on mutual respect. The PBOC fixed USD/CNY at 6.4908, just 4 pips above sell side estimates. Reaction to the NPC comments has been limited in offshore yuan, USD.CNH last down 39 pips at 6.4875.