Rangebound After Monday's Moves

Most pairs are moving in tight ranges after sizable moves on Monday. Risk assets are under pressure with equity markets in the region in the red, iron ore us under pressure last down around 0.25%.

• AUD is slightly weaker, AUD/USD down 3 pips at 0.7913. There is some chatter that flows could be limiting AUD gains, there is talk of profit taking in AUD/CAD ahead of 1.00. Australia recorded a goods trade surplus of $8.8 billion for the beginning of 2021, according to data earlier. January import of goods fell 10%, while export of goods fell 9%.
• NZD is around 5 pips lower. New Zealand declared one new Covid-19 case in the community this morning, it was linked to a previously identified case. This comes after the gov't decided to lower the alert level in Auckland to 1 from 2. The Q4 decline in NZ retail sales was steeper than forecast, as they fell 2.7% Q/Q vs. forecast of a 0.5% dip.
• JPY slightly firmer, local markets are closed for a holiday. An Asahi report is doing the rounds, suggesting that Japan considers lifting the state of emergency in areas other than Tokyo. On Monday, the number of new Covid-19 cases in the capital fell below 1,000 for the first time in a week, to the lowest level since Nov.
• The PBOC fixed USD/CNH at 6.4516, 23 pips below sell side estimates, the second lower fix in three days. Offshore yuan has strengthened but is still within yesterday's range, the pair is retracing a sizable move yesterday sustained amid a sell off in local equity markets.