The greenback has dropped in morning Asia-Pac hours, with the BBDXY index moving away from record highs printed Monday at 1,355 to last trade at 1,351. The move has been facilitated by a degree of richening in U.S. Tsy space as cash trading restarted in Tokyo, as well as an uptick in e-mini futures. The absence of any obvious headline catalysts suggests correction of overnight moves/profit taking have set the tone of early Asia-Pac trade.
- Sterling outperforms in the wake of its chaotic crush over the past two days, when the market issued a damning verdict on UK Cll'r Kwarteng's sweeping tax cut plans. Cable trades at $1.0756, up ~70 pips on the day, after printing an all-time low of $1.0350 on Monday.
- The kiwi is the second-best performer in G10 FX space, another laggard-turned-leader. NZD/USD trades at $0.5675, up ~40 pips on the day, after lodging a new cyclical low of $0.5625 on Monday. AUD/NZD has pulled back from yesterday's cycle peak (NZ$1.1462) to last deal at NZ$1.1418.
- Hawkish revisions to sell-side RBNZ terminal-rate forecasts may have lent some support to the kiwi dollar as BNZ and TD Securities became the latest desks to pencil in additional rate hikes this cycle.
- Today's data highlights include U.S. Conf. Board Consumer Confidence, new home sales & flash durable goods orders. Central bank speaker activity remains on high gear, with a suite of Fed, ECB, BoE & Riksbank members set to take the floor.