USD Firmer In Asia as OPEC+ Cuts Oil Production

The greenback is firmer in the Asian session on Monday. Over the weekend OPEC+ announced a surprise oil production cut of more than 1 million barrels a day abandoning previous assurances it would hold supply steady linkhere.

• Kiwi is pressured, NZD/USD is down ~0.6%. The pair is dealing a touch below its 20-Day EMA ($0.6227). NZ Residential Property listings in March were the lowest since 2007 falling 18% Y/Y. Fonterra has lowered FY23 forecast farmgate milk prices to NZ$8.00-8.60/kg down from NZ$8.20-8.80/kg, as Chinese demand has not returned to expected levels and supply is increasing as the Northern Hemisphere entered spring.
• AUD/USD prints at $0.6660/70, ~0.3% softer. Judo Bank Manufacturing PMI printed its lowest level since May 2020 at 49.1.
• Yen is pressured as rising US Treasury Yields weigh, USD/JPY is up ~0.3% last printing at ¥133.35/45. Resistance comes in at ¥133.59, the high from 31 March.
• Elsewhere in G10 NOK was ~0.4% firmer in early dealing, however gains have been pared and USD/NOK is flat. EUR and GBP are both ~0.4% softer.
• Cross asset wise; WTI futures are ~5.5% firmer, they were however ~7% firmer in early dealing. BBDXY is ~0.4% higher, 10 Year US Treasury Yields are up ~5bps.
• On the wires today in Europe we have Swiss CPI, further out the ISM Manufacturing Survey and the final print of US Manufacturing PMI headline.