USD Offered To Start The Week

The USD is slightly weaker in the first part of trade, with the BBDXY off by -0.10% at this stage. This puts us back at the 1223.75 region. This sees a continuation of the correction lower from Friday's +1230 highs. Note last week's low in the index came in close to 1217. Gains against the USD have been fairly broad based, with AUD and NZD outperforming modestly. Cross asset signals are fairly muted, with a large number of Asian markets closed today for LNY (including China, which is out all week).

• The BoJ minutes from Dec covered familiar territory, with a wide variety of opinions but Kuroda's central message still intact. Markets will keep one eye on the BoJ's 5-yr offering for commercial banks out later. The parameters of this were tweaked at last week's BoJ meeting.
• USD/JPY is sitting slightly up from lows for the session (129.25), last around 129.35/40. US cash Tsy yields are back close too flat, are opening slightly higher.
• NZD/USD is above Friday session highs, last around 0.6480/85, continuing the outperformance theme from Friday's session. We tested above 0.6530 last Wednesday in terms of upside targets.
• AUD/USD is trailing somewhat, last around 0.6980. This is still above NY highs from Friday, but last week the currency struggled above 0.7000.
• US equity futures are down a touch (-0.16%) at this stage, while only a few regional equity markets are open.
• Outside of BoJ operations the risk calendar is light for the rest of today's APAC session.