Risk Aversion Lingers In Asia

Asia-Pac equity benchmarks retreated on a negative lead from Wall Street and the PBOC's decision to refrain from cutting its LPRs, which put a bid into the yen, even as U.S. e-mini futures edged higher. JPY gained despite the fact that it is a Gotobi Day in Japan, blipping higher as e-minis trimmed some of their prior advance.

• The Antipodeans traded on a softer footing. AUD/USD re-tested its fresh cycle low of $7322 printed yesterday, but struggled to breach that level. NZD/USD operated within the confines of yesterday's range, while hawkish RBNZ bets got trimmed further, despite the absence of any notable local headline flow.
• USD/CNH moved away from the CNH6.5000 region, which provides a key near-term layer of resistance. The PBOC set the central USD/CNY mid-point just 4 pips above sell-side estimate, but the main focus was on monthly LPR fixing, with rates left unchanged despite some speculation of a cut.
• Activity across the region may have been limited by market closures in Singapore, Indonesia, Malaysia and the Philippines in observance of a major Islamic holiday. Major USD crosses held fairly tight ranges.
• U.S. housing starts and building permits take focus on the data front today, while ECB's Villeroy headlines the central bank speaker slate.