Macro Catalysts Light In Asia Ahead Of LNY, DXY Trades Lower

Asia-Pac market activity has been subjected to a lack of macro catalysts and the spectre of the Lunar New Year holiday.

• That has left the USD to operate on the backfoot as the DXY extends through Monday's low, which seems to be more of a momentum trade than anything else, although the modest downtick in U.S. Tsy yields may be applying some pressure there.
• E-minis are little changed, with the bulk of the major regional equity indices printing unchanged to higher. This comes after the major Wall St. metrics edged higher on Monday, as U.S. cash equities focused on the reflation narrative.
• The reflation narrative and downtick in the DXY is also supporting the broader commodity space, with gold and crude oil comfortably higher on the day.
• Elsewhere, the PBoC continues to fine tune liquidity conditions ahead of the LNY break, as it reaffirms its prudent messaging re: monetary policy via its actions.
• There is nothing in the way of headline catalysts slated for Asia-Pac hours, with comments from ECB's Lane, Fed's Bullard and the start of former U.S. President Trump's impeachment trial headlining globally on Tuesday, although the latter is expected to be more of a spectacle than a market mover.