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Little to report so far in the Asia time zone, the greenback is holding its gains from Wednesday, Antipodean crosses are marginally lower. AUD pressured as tensions continue to simmer with China, a Chinese ambassador has said it would respond in kind to any provocation and warned against outside influences meddling in internal affairs, while Australia trade minister Tehan responded by saying Australia will protect its national interests.

  • JPY is flat, USD/JPY holding below 110. Tokyo may be headed for tighter Covid-19 restrictions. Gov Koike said she will make the decision on whether to file a formal request after discussing the matter with experts. Sankei reported that Japan eyed moving ahead with tightening restrictions in Tokyo as well as other areas Osaka declared a medical emergency yesterday.
  • Offshore yuan is weaker, USD/CNH testing yesterday's highs. The decline for the yuan yesterday was the first this week, and USD/CNH is still someway off this week's highs around 6.58.

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