USD Rally Falters

The greenback held its worst levels for 4 days in Asia on Wednesday as markets digest headlines the US House will vote on Trump impeachment at approximately 1500EST.

• AUD/USD last down 9 pips at 0.7763. Tensions with China resurfaced after a bid by a Chinese state-owned company to buy an Australian construction company was shut down. Data showed job vacancies rose 23.4% in Dec after a 59.5% rise in November.
• NZD/USD is faring slightly better, up around 5 pips at 0.7224. Fitch affirmed NZ's ratings and outlook after market on Tuesday.
• USD/JPY last down 14 pips. There has been little in the way of notable local headline flow for JPY, with continued focus re: the potential expansion of the areas covered by the COVID-19 state of emergency. Japanese Prime Minister Suga news conference scheduled for 1000GMT/1900JST to give an update on the situation, while EconMin Nishimura proposed adding 7 prefectures to state of emergency.
• The PBOC fixed USD/CNY at 6.4605, some 218 pips firmer for the yuan on the weaker US dollar, but significantly softer than sell side estimates of 6.4510. According to Bloomberg analysts this is the biggest upside miss for the estimate since the inception of the metric in mid-2018.
• GBP has seen a continuation of yesterday's move, cable last changing hands at 1.3865, around 22 pips higher. EUR/USD 6 pips higher having seen a subdued session, last at 1.2213; sources note the move higher was capped by offers at 1.2220 and sizable option expiries between now and Jan 19.