USD Edges Lower

The USD is marginally weaker in the first part of trading. The BBDXY was last around 1262, -0.10% lower for the session. Headline flow has been light, with moves appearing to be a consolidation after the sharp rebound in the USD post yesterday's Asia close.

• Cross asset sentiment is fairly muted. Cash US Tsy yields are 1-1.5bps higher across the curve, while US equity futures are close to flat. Not surprisingly, regional Asia pac equity sentiment is weaker following sharp falls in US/EU markets.
• USD/JPY is back sub 137.50, -0.20% for the session. Modest yen demand was evident into the Tokyo fix. PMI prints were mixed, with services (51.7 v 50.3 prior), outperforming manufacturing (48.8 v 49.0 prior).
• GBP/USD pushed back above the 1.2200 handle, before selling interest emerged. The GfK consumer confidence print was slightly better than expectations (-42, against -43 forecast). Still, we remain at very depressed levels by historical standards.
• AUD/USD is attempting to hold above 0.6700, but is underperforming broader G10 gains. Preliminary PMIs were weaker across the board. NZ's manufacturing PMI also fell to 47.4 in November from 49.1. NZD/USD is holding up slightly better than the AUD, last above 0.6750.
• Event risks are fairly light for the rest of the Asia Pac session, with UK/EU PMI prints the focus later on.