USD Loses Ground As Vaccine News Inspire Optimism

Medical news applied pressure to the greenback, which remained fragile after Thursday's sell-off. DXY ground through yesterday's worst levels after BBG ran headlines noting that a Covid-19 vaccine developed by Pfizer & BioNTechis on track to receive regulatory review as early as Oct. Diminished demand for safe haven assets dented CHF as well, but JPY remained afloat.

• Vaccine news supported commodity FX/growth proxies, but NZD bucked the trend, while AUD eased off highs. The Kiwi lagged all of its G10 peers but USD, as RBNZ policymakers stuck to their familiar messaging, with RBNZ Chief Economist Ha pointing to international evidence that negative interest rates "do work at stimulating higher levels of credit growth" and "higher levels of economic activity". AUD/NZD rejected Thursday's high and eased off.
• GBP firmed up a tad, as the Times circulated a report noting that the UK has tabled a draft trade deal with the EU, albeit there were no signs that parties are edging towards any kind of breakthrough.
• USD/CNH slid through the CNH6.90 mark and showed at a fresh multi-month low, before ticking away from worst levels.
• Indonesia and Philippines observed public holidays.
• Preliminary PMI data from across the world, U.S existing home sales, UK & Canadian retail sales and EZ consumer confidence take focus today.