USD Bears Remain In Control

The USD has stayed on the back foot today, although we haven't seen much follow through from early session selling. The BBDXY sit close to 1211 currently, -0.25/0.30% versus NY closing levels, the DXY is slightly weaker, under 101.00, which is comfortably below late NY session lows. The dollar remains on the backfoot post the Fed.

• Cross asset signals have leaned against the USD from an equity market standpoint, with US futures continuing to push higher (as least for the S&P +0.36% & Nasdaq +1%), while regional equities have firmed, particularly for tech sensitive countries. US yields are mixed, slightly firmer at the front end, but with tight ranges overall.
• The better risk tone hasn't prevented slight JPY outperformance. USD/JPY sunk to 128.15/20 in early trade, but we now sit back at 128.50. The bear trigger is at 127.23, the Jan 16 low, from here bears can target 126.81 a Fibonacci projection.
• NZD/USD has also traded with a positive bias, with the pair hitting fresh cycle highs above 0.6535. We are just off these levels currently.
• AUD/USD lost some momentum, despite stronger housing data, last around 0.7145, just +0.10% up on NY closing levels.
• Looking ahead, we have the BOE rate decision before the ECB rate decision and President Lagarde's press conference. Also on the wires is U.S. Factory Orders, Initial Jobless Claims and Durable Goods.