Tech Equity Weakness Generates Risk Aversion, Which Then Moderates

Risk aversion was the order of the day in Asia, albeit it gradually moderated as the session progressed. Riskier currencies went offered in early trade on the back of tech weakness in U.S. equity space, with NASDAQ 100 e-minis in retreat after disappointing earnings reports from Meta and Spotify.

• The AUD was the worst performer in the space, with AUD/USD extending its pullback from a one-week high printed Tuesday. Its Antipodean cousin clawed back some of its initial losses, which allowed AUD/NZD to come off a fresh seven-month high.
• USD/JPY regained poise after an initial downtick, as participants gradually lost some interest in the yen. The DXY continued to trade on a slightly firmer footing and may snap its three-day losing streak.
• Monetary policy decisions from the ECB & BoE headline today's economic docket, with a slew of global Services PMI readings as well as U.S. weekly jobless claims, factory orders & final durable goods orders also due.
• In addition to scheduled press conferences with ECB Pres Lagarde & BoE Gov Bailey, it may be worth following parliamentary testimonies from Fed nominees Raskin, Cook & Jefferson.