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USD Gains On Defensive Feel In Asia

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The greenback recovered from multi-month lows in the quiet Asia-Pac session, as most regional equity benchmarks traded on a heavier note, but other safe haven currencies remained limited. USD/JPY moved higher over the Tokyo fix, but rejected its 50-DMA and ebbed off highs as the BoJ left its monetary policy settings unchanged and tweaked its forecasts in line with expectations.

  • The Antipodeans traded on a softer footing amid broadly cautious mood. The kiwi was the worst G10 performer, as local participants returned from a long weekend.
  • The PBoC set its USD/CNY mid-point at CNY6.4924, 8 pips above sell-side estimates. USD/CNH crept higher, but yesterday's peak remained intact.
  • U.S. Conf. Board Consumer Confidence, Italian sentiment gauges, Swedish unemployment, Riksbank MonPol decision are due today, with speeches coming up from ECB's de Cos & BoC's Macklem.

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