USD Gets Its Groove Back, While Lowe Dampens AUD

The greenback managed to claw back some of Tuesday's losses, and heads into the European session slightly higher helped by a bump higher in US yields.

• AUD is bottom of the G10 pile, pressured after RBA Governor Lowe said he would prefer a weaker AUD, while iron ore export figures from Port Hedland were revealed to be at a two year low. AUD/USD is down some 29 pips at 0.7685. NZD came under similar pressure.
• JPY pairs are softer, with Goto-bi Day demand conspicuous in its absence. USD/JPY up 39 pips at 108.87. There were some reports in Kyodo that Japan has decided to exclude overseas spectators from attending the Tokyo Olympics, the Olympics Minister Murukawa said a decision would be made in late March.
• The PBOC fixed USD/CNY at 6.5106, 21 pips below sell side estimates, indicating a willingness to let the yuan strengthen. This brings the sum of the misses since the return from LNY to +9 pips. USD/CNH is up 6 pips at 6.5191. The rate moved from negative territory after inflation data from China beat estimates.
• SNB's Zurbruegg was on the wires, he said it is too early to talk of a rate rise, and there are options to ease policy further if needed, USD/CHF 23 pips higher at 1.2664.
• Reports of some tensions between UK and EU officials after a senior EU official wrongly suggested the UK had banned all Covid-19 vaccine exports.