USD Marginally Firmer In Asia

The greenback has marginally firmed through the Asian session, after beginning the day on the back foot the USD was bid as US Treasuries retreated from best levels and e-minis pared gains.

• Kiwi is the weakest performer in G-10 space, last printing $0.6140/45 down ~0.4%. NZD/USD printed its lowest level since 22 Nov, waning risk appetite weighed. RBNZs Chief Economist noted that Cyclone Gabrielle is a supply shock which will add to inflation, also noting RBNZ sees signs that demand is starting to slow and higher rates are needed to cool the economy.
• AUD/USD prints at $0.6710/15, down ~0.2%. Iron Ore futures were down ~2% following an order by Chinese authorities to cut production in Tangshan in a bid to curb pollution. Q4 Company profits printed at 10.6% firmer than the expected 1.6%. Inventories fell 0.2%, the expectation had been for a flat print.
• JPY was firmer in early trade before paring gains, USD/JPY found support at ¥136.00 and pared losses to deal flat last printing ¥136.30/40. Upside resistance comes in at ¥136.67, the 38.2% retrace of Oct-Jan bear leg. Ueda's appearance hasn't moved the needle. He has reiterated comments from Friday stressing challenges facing whoever succeeds Kuroda amid uncertainty on the economic outlook.
• Elsewhere in G-10 moves have been limited with little follow through. EUR and GBP sit little changed from opening levels. NOK and CHF are ~0.1% softer.
• Cross asset wise; regional equities are softer, Hang Seng is down ~0.75%, and e-minis are ~0.1% firmer. The US Treasury curve is flatter. BBDXY is ~0.1% firmer.
• In Europe today EZ Economic Sentiment Indicator is the highlight of an otherwise thin calendar. Further out we will see Durable Goods Orders, Pending Home Sales and Dallas Fed Manf Activity.