Tuesday's Moves Tempered

After declining through much of the session on Tuesday, the greenback has bounced slightly in early Asia on Wednesday.

• AUD under pressure after comments from RBA Governor Lowe, he said that he is more comfortable with a lower rather than higher AUD, would be more comfortable with even lower levels. AUD/USD down 10 pips at 0.7704.
• NZD is flat, off earlier highs. The RBNZ announced earlier that it would remove some of the temporary liquidity facilities put in place during the pandemic, though they added the decision has no implications on monetary policy stance.
• JPY pairs are softer, with Goto-bi Day demand conspicuous in its absence. USD/JPY up 9 pips at 108.58. There were some reports in Kyodo that Japan has decided to exclude overseas spectators from attending the Tokyo Olympics, the Olympics Minister Murukawa said a decision would be made in late March.
• The PBOC fixed USD/CNY at 6.5106, 21 pips below sell side estimates, indicating a willingness to let the yuan strengthen. USD/CNH is down 19 pips at 6.5168, having fallen sharply from above 6.56 during Asia hours yesterday. Markets look ahead to inflation data.
• SNB's Zurbruegg was on the wires, he said it is too early to talk of a rate rise, and there are options to ease policy further if needed, USD/CNH 11 pips higher at 1.2644.
• Reports of some tensions between UK and EU officials after a senior EU official wrongly suggested the UK had banned all Covid-19 vaccine exports.