J&J Pauses Covid-19 Vaccine Study, Triggering Defensive Flows

G10 FX space switched into a defensive mode as U.S. Tsys re-opened after the elongated weekend, while STAT published a report noting that J&J paused their Covid-19 vaccine study owing to an unexplained illness in one participant. AUD was the worst G10 performer, as reports outlining fresh tensions in Sino-Australian relations did the rounds, with stories re: informal ban taking focus. It is worth noting that there is A$1.0bn worth of options with strikes at $0.7100 expiring at today's NY cut. The Kiwi held up well amid AUD/NZD sales. Safe haven currencies were bid on the back of the broader risk-off mood.

• USD/CNH rallied past yesterday's high as cash Tsys re-opened/STAT published its story, which put a bid into the greenback. The rate eased off after an in-line PBoC fix and continued to trade in positive territory, but comfortably shy of highs.
• IDR led losses in Asia, ahead of today's monetary policy decision from Bank Indonesia. KRW also faced some additional headwinds as South Korea's daily coronavirus case count returned above 100.
• German ZEW Survey, U.S., German & Swedish CPIs, UK labour market report take focus today. BoE's Bailey, ECB's de Cos, Fed's Barkin & Riksbank's Ingves are set to speak.