Powell Stays On Message

A few comments from Fed's Powell crossed the wires, he noted that while the outlook had brightened substantially there were still risks. He also reiterated that the Fed would keep supporting the economy until the recovery was complete.

• NZD and AUD hovering around neutral levels.NZ PM Ardern was forced to defend the national vaccination campaign after another border worker tested positive for Covid-19. Ardern explained that the vaccine rollout has covered 80% of frontline & MIQ workers thus far.
• JPY slightly softer, USD/JPY 4 pips higher. Osaka Governor appeared on TV Asahi, suggesting that he may ask the central gov't to declare a state of emergency. The authorities will take stock of the situation next week and decide whether to request an emergency declaration. Data showed PPI rose 1.0% Y/Y in March against estimates of a 0.5% increase.
• USD/CNH opened higher and has moved in range since, last up 42 pips at 6.5626.Markets look ahead to the Chinese data dump this week.