USD Offered In The First Part Of The Session, But Little Follow Through

The first part of the Asian session has seen further modest USD weakness, with the BBDXY off by a further 0.1% to the 1283.50 region. This follows a loss of just over 0.50% through Tuesday's session. The main headline flow has been in terms of ramped up PCR testing in China cities, which is aiming at curbing surging covid case numbers.

• This hasn't impacted broader sentiment though, as cross asset signals are weighing on USD sentiment at the margin. Regional equities are in positive territory, while US equity futures are close to flat at this stage. The fixed income space is seeing a richening trend in U.S Tsy futures (with no cash trading as Japan is out today).
• NZD/USD is around 0.6150, slightly down versus NY closing levels, with the focus on the RBNZ announcement, coming up shortly. 75bps is expected by the economic consensus.
• AUD/USD is close to 0.6650, slightly down from earlier highs of 0.6660. Preliminary PMI prints for November showed softness, particularly in the services space, but this hasn't impacted sentiment a great deal.
• USD/JPY dipped below 141.00 earlier, but is now back above this level. EUR/USD is around 1.030/15 while GBP/USD is near 1.1900, slightly firmer versus NY closing levels.