U.S. Dollar Paces Losses Amid Better Risk Sentiment

The greenback is in retreat as an uptick in U.S. e-mini futures signals a restoration of positive equity sentiment, while the Tsy yield curve has shifted lower in cash Tokyo trade. The BBDXY index has almost halved yesterday's advance. Headline flow has been limited, with no apparent reaction to the latest North Korean missile test.

• Recovery in risk sentiment has sapped strength from the yen, albeit USD/JPY deals 18 pips below neutral levels as we type. U.S./Japan 10-year yield spread has narrowed 1.6bp today.
• The Antipodeans have turned bid, with the kiwi leading gains after the RBNZ's hawkish monetary policy review yesterday.
• Australia's trade surplus unexpectedly shrank in August on the back of a surprise 4% M/M jump in imports. The AUD sits roughly where it was before the release.
• Financial markets in mainland China remain closed for a public holiday.
• German factory orders, EZ retail sales and U.S. initial jobless claims headline the global data docket going forward. There is central bank speak galore, as BoJ, Fed and BoE members will speak, while the ECB will publish the minutes from its September monetary policy meeting.