USD Lags G10 Peers, AUD Knee-Jerks Higher As RBA Holds Steady

USD remained under pressure overnight, underperforming all of its G10 peers, with participants assessing U.S. President Trump's relatively early return to the White House and hopes for progress in U.S. fiscal talks. The greenback failed to shake off its weakness even as a BBG source story noted that a U.S. House panel will recommend a breakup of tech giants and overhaul of antitrust law, applying some modest pressure to e-minis.

• The aforementioned antitrust piece from BBG inspired a round of JPY purchases, but the move was limited and short-lived. The story helped moderate the initial risk-on impetus, which aided the Antipodeans early on.
• AUD briefly popped higher as the RBA left its monetary policy settings unchanged (in line with expectations) and said that domestic unemployment rate should peak at a lower level than expected. All eyes move to Australian FY20/21 Federal Budget, due later today.
• IDR was well bid and outperformed in Asian EM space after Indonesia's parliament passed an omnibus bill on job creation, easing labour and investment regulations. BBG ran headlines about the vote after onshore IDR trading closed on Monday. Lawmakers brought forward the vote and held it ahead of a planned three-day national strike, while the police dispersed protesters against the controversial law.
• Firmer food prices unexpectedly boosted South Korean CPI inflation last month, helping USD/KRW print its worst level since Jan as onshore markets re-opened. South Korean Vice FinMin Kim outlined potential sources of increased market volatility in the coming months and said that officials will monitor financial markets.
• USD/CNH ticked higher, with liquidity still thinned by Chinese holidays, but continues to hover above cycle lows.
• U.S. & Canadian trade figures, German factory orders take focus on the data front. Central bank speaker slate is tightly packed and features Fed, ECB & Norges Bank members (including their respective chiefs).