Risk Gets Some Reprieve, Yen Turns Bid Into Tokyo Fix

The commodity-tied bloc paced gains in G10 FX space, with the Antipodeans sitting comfortably atop the pile. Risk took a breather after Monday's rout caused by pre-Jackson Hole musings amid thin headline flow.

• From a cross-asset perspective, the aggregate Bloomberg Commodity Index advanced, with both crude oil and iron ore creeping higher. U.S. e-mini futures operated in the green, even as Asia-Pac equity benchmarks declined on a negative lead from Wall Street.
• AUD and NZD each added a handful of pips against the greenback, with the kiwi dollar getting some relief after registering losses for six days in a row. Both AUD/USD and NZD/USD traded within yesterday's ranges.
• Light pressure on the greenback emerged in early Asia hours as South Korean authorities warned that they are monitoring offshore speculative factors. USD/KRW pulled back from session/cycle highs, which spilled over into other UDS crosses, to a degree.
• Aforesaid greenback sales underpinned the initial round of USD/JPY sales, with the rate extending losses into the Tokyo fix to last trades ~25 pips worse off. This puts the pair on track to snap a five-day winning streak.
• The Eurozone's single currency remained on he defensive, with EUR/USD holding near its worst levels from yesterday, when it sank below parity.
• Manufacturing PMI readings from across the globe will keep hitting the wires through the day, with U.S. new home sales & EZ consumer confidence also due. ECB's Panetta will participate in a policy panel.