USD Offered Amid Light News Flow

The USD is lightly offered in the first part of trading. The BBDXY is off -0.1% for the session so far, last close to the 1290 level. There have been no major headline catalysts, but a firmer tone to both US equity futures and USTs has helped at the margin (2yr yield off by 1.5bps).

• The main headlines have been from the China authorities calling for control of Covid outbreaks in both Beijing and Chongqing. This hasn't impact USD/CNH sentiment though (last under 7.1700, -0.15% since the open).
• Gains against the USD are fairly uniform, with USD/JPY drifting back sub 142.00. Japan equities are outperforming, with the Nikkei 225 at +0.80% at this stage.
• AUD and NZD are around +0.15% higher versus NY closing levels. The wider trade deficit reported for NZ earlier having little impact on the Kiwi. NZD/USD was last at 0.6110. AUD/USD is back around 0.6615, with RBA Governor Lowe's speech this evening the next major focus point.
• EUR/USD is back above 1.0250, after finding support closer to 1.0220 overnight. GBP/USD is near 1.1850, support under 1.1800 remains evident for this pair.