Recent Moves Extend

Trends that were apparent in European and US sessions have persisted, the greenback has continued its rally in Asia on Tuesday, while commodity currencies and yen decline.

• AUD and NZD are both lower. AUD/USD last down around 6 pips at 0.7643, data earlier showed NAB Business Conditions rose to 15 in February, from 9 previously.
• NZD.USD last down 17 pips at 0.7112, the ANZ Activity Outlook dropped to 17.4 in March, from 21.3 previously, while Business Confidence slipped to 0 from 7.0.
• JPY has weakened, data earlier in the session showed final Q4 GDP at 2.8% Q/Q, lower than the preliminary 3.0%, annualized GDP fell to 11.7% from 12.7%. Earnings data showed average wages fell 0.8% y/y in January, recording a 10th straight drop following a 3.0% fall in December. Real wages also remained in negative territory. Base wages, the key to a steady recovery in cash earnings, rose 0.3% y/y after falling 0.1% in December for the first rise in three months. USD/JPY has moved above 109.00, contacts noting USD/JPY demand from Japanese banks.
• PBOC fixed USD/CNY at 6.5338, just 2 pips above sell side estimates. Offshore yuan is down some 37 pips, USD/CNH last at 6.5474, but still holding most of the gain from yesterday.