Greenback Not Giving Ground

The greenback consolidated in the US session as yields continued to rise, USD has not given much ground in Asia.

• AUD dropped to start the session, but recovered after robust trade balance data. showed the trade surplus in January rose to AUD 10.14bn, above expectations of AUD 7.5bn. The gain was driven by a rise in exports to the tune of 6% against expectations of a 4% rise, imports fell less than expected indicating robust domestic demand. Retail sales were slightly soft but were ignored.
• NZD has seen similar price action, RBNZ Gov Orr reiterated that monetary policy needs to remain stimulatory and continued to downplay the tweak to the bank's remit, which requires the MPC to consider the impact of its decisions on the housing market. Orr said that central banks globally are ready to tolerate inflation overshoots
• JPY is slightly softer again, USD/JPY taking a look over the 107 handle. Late doors on Wednesday, PM Suga said that the state of emergency in the Tokyo area may have to be extended by two weeks. While the premier seems to be yielding to the pressure from regional officials, he said that the final decision will be made after further consultations with local leaders and experts.
• PBOC fixed USD/CNY at 6.4758, just 4 pips above sell side estimates. China's key annual political meetings are due to begin today where focus will be on the policy agenda for the next five year plan.