USD Nosedive Drives FX In Asia

USD was the big mover overnight, as it started the week with a nosedive.
Sino-U.S. tit-for-tat consulate closures inspired JPY demand early on, which
sent USD/JPY to fresh cycle lows. The spot continued to slide, even
as broader JPY strength waned, while a surge in gold and concerns over
U.S. fiscal matters kept denting DXY, pushing it to a 22-month low.

• USD sales helped USD/CNH probe the water below the CNH7.0 mark, in spite
  of a softer than expected PBoC fix and persistent Sino-U.S. jitters. A jump in
  Chinese industrial profits may have helped the redback.
• The Antipodeans recouped initial losses, with AUD looking through comments
  from RBA Asst Gov Kent. The official stuck to a familiar script, expressing
  preference for a weaker AUD, but noted that the currency trades in line
  with fundamentals.
• NOK led gains in G10 FX space, even as its oil-tied peer CAD landed
  towards the lower end of the pile.
• Focus turns to German Ifo Survey and flash U.S. durable goods orders.