Tight Ranges So Far

A rangebound session so far in Asia, despite a torrent of data hitting the wires.

• NZD is top the G10 pile, data earlier showed unemployment fell to 4.9% against expectations of 5.6%. The data saw RBNZ rate hike expectations reprice and yields rise across the curve which has helped push NZD higher.
• AUD is hovering around neutral levels, moving back into positive territory after building approvals rose 10.9% in December, well above expectations of 3%. Earlier in the session IHS Markit January Services PMI hit the wires. The measure fell to 55.6 from 57.0 previously, but stays in expansion for the fifth consecutive month.
• JPY pairs are flat, yesterday USD/JPY rallied for the fifth consecutive session, the longest streak since September. Tuesday brought the confirmation that Japan will extend its state of emergency through Mar 7. Upper House Sec-Gen of LDP told BBG that Japan should reinstate its Go To campaign after the declaration of emergency is terminated in Mar. The debate around the Olympics going ahead goes on.
• The PBOC fixed USD/CNY at 6.4669, a 10 pips miss against sell side estimates, which brings misses to +42 pips so far in February. The bank drained a net CNY 80bn of liquidity via OMO's after three days of injections. Money market rates had started to creep lower as markets were reassured the PBOC would take measures to ensure liquidity.
• GBP & EUR both slightly higher, the greenback has softened a touch after US Tsy Sec Yellen said a coronavirus aid package was desperately needed, while there are also reports that UK Cabinet Minister Gove will demand Brussels relax post-Brexit trade rules between Britain and Northern Ireland.