USD Pares Losses As Risk Appetite Wanes

The greenback was pressured in early dealing however weakness in regional equities and a retreat from early highs in EU/US equity futures has seen the USD pare its losses. The likely wipeout of holders of Credit Suisse’s AT1 debt has rattled risk sentiment.

• Kiwi is the weakest performer in the G-10 space at the margins, NZD/USD printed an early high of $0.6306 before falling ~1% as risk sentiment waned. The next downside target is the 20-Day EMA ($0.6217).
• AUD is also pressured. AUD/USD prints at $0.6680/85 ~0.2% softer, downside support comes in at $0.6590 low from March 15. RBA's Kent spoke this morning and noted that its likely to take longer than usual to see the full effect of higher rates due to the high proportion of borrowers on fixed rate loans.
• Yen is little changed, USD/JPY has dealt in a ~100 pip range. The pair firmed before paring gains as risk sentiment soured through the Asian session and US yields pulled back. The pair last prints at ¥131.75/85.
• EUR and GBP have pared early gains and both side unchanged from Friday's closing levels.
• Cross asset wise; US equity futures are unchanged, e-minis have been up as much as ~0.7%. Hang Seng is down ~2.5%. 10 Year US Treasury Yields are ~1bp lower, however they were up as much as 8bps.
• The fallout from the UBS/Credit Suisse deal as well as the US focus on regional banks will dominate today. PPI data from Germany and Eurozone trade balance headline an otherwise thin docket on Monday.