USD Pressured In Asia

The greenback has been pressured in Asia on Tuesday as firmer risk sentiment has seen after Chinese and Hong Kong shares rallied on optimism that more economic support will come from Beijing.

• AUD is the strongest performer in the G-10 space at the margins. AUD/USD is up ~0.4% and last prints at $0.6760/65. Resistance is at the high from July 21 ($0.6788), a break through here opens $0.69 the high from June 16.
• Kiwi is also firmer however the NZD is lagging the AUD. NZD/USD prints at $0.6210/15 ~0.2% firmer thus far today.
• USD/JPY is ~0.1% lower however ranges remain tight for the Yen. Support is at the low from Jul 21 ¥139.75. Resistance comes in at ¥142.08, 61.8% retracement of the Jun 30 to Jul 14 downleg.
• Elsewhere in G-10 the Scandies are firmer with NOK up ~0.3% and SEK ~0.2% firmer, however liquidity is generally poor in Asia. EUR and GBP are up ~0.1%.
• Cross asset wise; BBDXY is down ~0.2% and 2 Year US Tsy Yields are ~2bps lower. Hang Seng is up ~3% and the CSI300 is up ~2.5%.
• There is a thin docket today, rate decisions from the Fed, ECB and BOJ later in the week are coming into view and provide the highlight this week.