The mood music around a potential Covid-19....>

FOREX: The mood music around a potential Covid-19 vaccine improved yesterday,

and the optimistic feel carried over into early Asia trade (but U.S. equity

index futures have just turned red). JPY & USD have now ticked away from worst

levels, while CHF remains the weakest G10 currency. AUD tops the pile ahead of

the release of Australian weekly payroll jobs & wages data and minutes from the

RBA's May monetary policy meeting. AUD/JPY showed above a key resistance area

(Y70.16-19), but has returned below there. GBP is solid, lagging only AUD.

- NZD faded its earlier uptick after news wires carried comments from RBNZ

officials. RBNZ Dep Gov Bascand said that the RBNZ "will evaluate negative rates

alongside other options" and "could expand [its QE plan] if needed", while Asst

Gov Hawkesby said that the central bank expects NZD to continue to depreciate.

- USD/Asia trades on a softer footing, with KRW & MYR leading gains in the

space, as they played catch-up to yesterday's risk rally.

- Final Japanese industrial output, German ZEW Survey, UK labour market report,

as well as U.S. housing starts/building permits headline the data docket today.

Fed's Powell, Kashkari & Rosengren, ECB's Lane & Norges Bank's Olsen will speak.