Greenback Trades On Back Foot, Kiwi Catches Light Bid With Key MAs In Play

The BBDXY is marginally softer amid light but discernible weakness in major safe haven currencies. A steady upswing in e-mini futures has generated a headwind to USD, JPY and CHF, with the three main contracts sitting 0.14%-0.32% higher on the day. Several central bank decisions are eyed this week, with the Fed's meeting Wednesday providing the focal point.

• The kiwi is the best G10 performer, by a narrow margin, with some NZD crosses engaging key moving averages. NZD/USD is yet to test resistance from its descending 50-DMA, which capped gains yesterday. AUD/NZD has faltered past its 200-DMA after failing to close below there in the wake of yesterday's foray through the MA.
• The regional docket today centres around the RBA's monetary policy decision (see our preview here). When this is being typed, the OIS strip prices 28bp worth of tightening today, implying that the market sees a 25bp increase in the cash rate target as a done deal. A minority of analysts (4/31 in a Bloomberg survey) have forecast a 50bp rate rise.
• China's Caixin PMI will take focus later in the day, with manufacturing PMI readings from across the globe set to keep trickling through. The BoJ and BoK will publish the minutes from their September and October monetary policy meetings respectively. Japanese central bank Gov Kuroda will testify to parliament.