Higher U.S. Yields Allow USD To Outperform

The USD firms as US. Tsy yields move higher, with Asia-Pac participants fading Wednesday’s richening in Tsys.

• There hasn’t been anything in the way of meaningful overt headline flow observed.
• Note that the Hang Seng is opening on the front foot, although e-minis trade lower on the firmer USD-higher U.S. Tsy yield dynamic.
• The Antipodeans find themselves at the foot of the G10 FX table against this backdrop, while the EUR is proving the most resilient vs. the USD in this limited uptick for the greenback
• Japanese final GDP data and a slightly wider than expected Australian monthly trade surplus print (coupled with soft internals) have done little for price action.
• The daily new COVID case count out of China continues to moderate from the all-time highs lodged at the backend of November, although that may be a function of a relaxation in testing requirements.
• With a limited global docket apparent on Thursday, it will be cross-market derived flows and wider headlines that drive price action into London hours.