US Spending Plan Announced With A Whimper

Narrow ranges so far in Asia with a muted market reaction to US President Biden's latest spending plan. Senate Minority Leader McConnell said earlier he is not likely to support the plan due to "massive tax increases" and potential effects on the national debt, suggesting that the package would go through Congress using reconciliation, meaning it would need a simple majority to pass the Senate. House Speaker Nancy Pelosi has signaled that she hopes to pass President Biden's big infrastructure bill as early as July 4.

• AUD has weakened, markets await a number of data released. Data so far has been broadly positive; AiG Performance of Manufacturing Index rose to 59.9 from 58.8 previously, while Markit Australia PMI printed the final March reading at 56.8, down slightly from 56.9 in February.
• NZD also softer. CoreLogic House Price Index surged 16.1% Y/Y in Mar after rising 14.5% in Feb. House price inflation accelerated to the fastest pace in 15 years. ANZ Consumer Confidence Index fell 2.0% M/M to 110.8 from 113.1 in Mar after a 0.6% downtick in Feb.
• JPY has shed a handful of pips. USD/JPY last trades at 110.72, down from highs of 110.97 previously. The BoJ Tankan survey saw the large manufacturing index at 5 against expectations of -1, up from -10 previously. This is the first positive reading since the start of the pandemic.
• Offshore yuan is stronger, on track for a third day of gains. Contacts note corporate accounts buying CNH. Meanwhile, geopolitical tensions continue to simmer, the Biden administration yesterday raised concerns over policy tools China uses to encourage economic growth. Markets await Caixin PMI after strong official PMI yesterday.
• EUR slightly softer following the earlier announcement that France would enter a four-week lockdown starting this weekend.