Greenback Strengthens Amid Higher Yields, Weaker Equities

The USD is firmer in Asia as higher US Treasury Yields and Weaker Equities have weighed on risk sentiment.

• AUD/USD is pressured down ~0.2%. The pair is see-sawing around the $0.69 handle, despite a hawkish tilt in the RBA minutes which provided confirmation that the Board considered a 25bp or 50bp interest rate increase earlier this month, but not a pause. Support comes in at $0.6812, 16 Feb low.
• Yen is little changed from opening levels. USD/JPY has traded in a narrow ¥134.20/50 range today. Feb Jibun Bank Preliminary PMI prints crossed, the Composite read was 50.7, unchanged from the previous month. Manufacturing print remained in contractionary territory at 47.4 falling from last month's 48.9 read. Services printed 53.7 up from 52.3 prior.
• Kiwi is also softer, last printing at $0.6240/45. The NZ Treasury noted that the rebuild after Cyclone Gabrielle will support economic activity. They also noted that more demand will add to inflationary pressure and it may result in the RBNZ keeping rates higher for longer. Kiwi did firm in the aftermath of the comments however there was little follow through.
• The USD bid has weighed on EUR and GBP, both are down ~0.2%. NOK is down ~0.3%, Brent Crude futures fell by ~$1 in Asia.
• Cross asset wise: e-minis are ~0.4% softer, BBDXY is up ~0.2%. 10 Year US Treasury Yields are ~4bps firmer.
• In Europe today flash PMI data from cross as well as the latest ZEW Survey from Germany. Further out flash US PMIs and existing home sales data is on the wires.