USD Down Slightly, As Firmer China/HK Equities Aid Risk Appetite

The USD sits slightly weaker versus closing levels from NY last Friday. The BBDXY last near 1244.50, off -0.10% at this stage. Regional equity market sentiment has been fueled by China related property market optimism, although spill over into G10 has been fairly limited in the session to date.

• AUD/USD is marginally outperforming, last near 0.6465, a touch firmer for the session. Earlier highs were at 0.6475, while lows were at 0.6445. The firmer metals backdrop (likely aided by China property sentiment), iron ore close to fresh recent highs near $116/ton, has helped offset quite soft Q2 domestic data. Inventories and profits data were notably weaker than expected. Jobs ad and the Melbourne Institute inflation gauge ticked higher though.
• NZD/USD has trailed slightly, last near 0.5945, earlier highs were at 0.5960. Q2 terms of trade were better than forecast, while Auckland house prices reportedly rebounded strongly in August.
• USD/JPY has tracked familiar ranges, last near 146.15/20. Earlier dips back towards 146.00 were supported. We haven't breached Friday session highs though around the ~146.30 level.
• US Cash Tsys have been closed today due to the US Labor market holiday on Monday. The Dec 10yr futures is drifted a touch lower to 110-14, -04+. US equity futures sit marginally higher.
• Looking ahead, while US markets are shut, it is worth noting that ECB President, Christine Lagarde, is due to speak at an event hosted by the European Economics and Financial Centre, in London.