Risk-On Mood Drives Activity, Yen Brings Up The Rear

Positive risk sentiment carried over into the Asia-Pac session, with little in the way of fresh headline flow to jolt the G10 FX space. The DXY extended losses to its worst levels this week, as safe haven currencies struggled.

• JPY was comfortably the worst G10 performer, which allowed USD/JPY to move away from Wednesday's low. Worth flagging that $1.0bn of USD/JPY options with strikes at Y108.50 expire at today's NY cut, with the spot last trading at Y108.51.
• NZD led commodity-tied FX higher, with risk appetite providing the main driver. AUD/NZD ground lower ahead of the expiry of A$2.2bn of AUD puts with strikes at NZ$1.0730 (spot last sits at NZ$1.0740). The pair's 50- & 200-DMAs intersect at NZ$1.0723, leaving participants on the lookout for a "golden cross."
• The PBOC fixed its USD/CNY mid-point at CNY6.4970, 18 pips below sell side estimates, the second day the PBOC has set a stronger than expected central rate. This is the final day of the NPC and Chinese PM Li Keqiang will deliver his closing remarks at 0700GMT.
• The announcement of the ECB's monetary policy decision will be followed by a press conference with Pres Lagarde. The central bank speaker slate also includes BoC's Schembri & Norges Bank's Bache. On the data front, focus turns to U.S. initial jobless claims.