Market Closures Limit Activity In Asia

Light pressure emerged on safe haven currencies as e-minis erased early losses in what was a very quiet Asia-Pac session, as a number of market closures across the region put markets in a lull. The DXY softened, consolidating below its 50-DMA.

• NZD cemented its position as the worst G10 performer this week (on a par with USD). The kiwi's wings were clipped by weak NZ card spending data, albeit the currency clawed back initial losses towards the London morning tracking gains in AUD.
• USD/JPY held a tight range with Japan off for the National Foundation Day, establishing itself above the 100-DMA, which limited losses yesterday. Worth noting that $1.1bn of options with strikes at Y105.00-05 expire at today's NY cut, with spot currently trading at Y104.59.
• Lunar New Year holidays kicked off in China and USD/CNH tread water, ignoring headlines re: U.S. Pres Biden's phone call with Chinese Pres Xi.
• U.S. initial jobless claims headline the data docket today. Speeches are due from ECB's de Guindos, Villeroy & Knot, while the European Commission will release its economic forecasts.