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USD Giving Back Some Of Monday’s Rally


The USD trades on the defensive during early Asia-Pac trade, finding itself at the bottom of the G10 FX performance table.

  • This comes after Monday’s data & WSJ Fed whisper Timiraos-inspired rally, with a light downtick in Tsy yields and uptick in e-minis also seen, once again countering Monday’s moves, while introducing a light cross-market impetus to the USD downtick.
  • The JPY outperformed early on, although the Antipodeans have now moved to the top of the G10 FX table after BBG headlines noted that that Beijing will no longer require a negative COVID test result to enter most public venues, in the latest rollback of COVID restrictions across the major Chinese cities. In terms of specifics, BBG headlines have noted that schools, bars and restaurants in Beijing will still require a negative COVID tests taken within the last 48 hours to allow entry.
  • This comes as the China’s daily new COVID case count continues to moderate from the all-time highs lodged at the end of November.
  • The latest RBA monetary policy decision headlines the global docket on Tuesday, with a 25bp hike widely expected & 20-21bp of tightening priced into RBA dated OIS.
  • Further out German factory orders & trade balance data from North America is due. Comments from Riksbank’s Floden are also slated.
MNI London Bureau | +44 0203-865-3809 |
MNI London Bureau | +44 0203-865-3809 |

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