JPY Outperforms As On Modest Risk Aversion

The last part of dealings has seen a slightly risk averse tone emerge. USD/JPY is to fresh lows for the session, last in the 141.35/40 region. We are around 0.25% stronger in yen terms versus NY closing levels on Friday. AUD and NZD are weaker, but losses are modest at this stage. AUD/USD sits at 0.6725/30, seeing support on dips sub 0.6720. NZD has slipped by slightly more, down to 0.6160.

• There doesn't appear a direct catalyst for the moves. In the cross asset space, we are seeing a weaker tone to HK/China equities (weakness in property related stocks weighing). These moves have likely helped push USD/CNH back to 7.1900. Other regional equity indices are performing better though.
• US equity futures are close to flat though. In the yield space, we have seen a tick higher from a yield standpoint, the US 2yr last near 4.86%, nearly +2bps for the session.