Holding Moves

Further losses in the greenback helped crosses regain ground lost earlier this week, there has been limited data and sparse headline flow so far and FX is holding near closing levels.

• AUD is higher, supported by gains in iron ore. Metals are higher for the second day while crude also gained.
• Similar move in NZD, helped by the announcement that Auckland moves to Covid alert level 1 today, with social distancing requirements lifted. BusinessNZ M'fing PMI printed at 53.4 in Feb vs. revised 58.0 recorded in the prior month. NZD could see some headwinds after the IMF advised that NZ should not withdraw fiscal and monetary stimulus prematurely, even as there is no need for additional support at the moment.
• JPY is weaker, an influential LDP lawmaker Yamamoto said that Japan should double the fiscal stimulus delivered to date and needs to "make a bold move along the lines of what the U.S. is doing."Elsewhere, Mainichi reported that the BoJ is planning to ditch the guideline allowing the central bank to but ETFs at the pace of Y6tn per year.
• The PBOC fixed USD/CNY at 6.4845, 8 pips below sell side estimates and a third straight lower fix, a rarely seen occurrence amid the PBOC's unspoken preference for a weaker yuan. USD/CNH is flat, last at 6.4784, the rate has fallen from 6.5625 on Tuesday this week.