USD Softer In Asia, Regional Equities Firm

The greenback is marginally pressured in Asia today. Firmer regional equities have boosted risk sentiment weighing on the USD, however ranges do remain modest with little follow through on moves in G10 FX.

• AUD/USD is ~0.2% firmer, last printing at $0.6740/45 the next upside target is $0.6812 the low from 17 Feb. The final read of Judo Banks Feb Composite and Services PMI was on the wires this morning, the measures are a touch above 50 in expansionary territory. Jan Home Loans fell -5.3%, the RBAs tightening continues to be felt in the housing market.
• Kiwi is also firmed, NZD/USD is up ~0.1%. The pair firmed as the Hang Seng opened up over 1% before paring gains to sit marginally higher as regional equities retreated from best levels. ANZ Consumer Confidence fell in February. The Index printed 79.8, down -4.3%, as continued RBNZ tightening and the impact of Cyclone Gabrielle are felt.
• USD/JPY prints at ¥136.65/75, marginally below yesterday's closing level. The pair initially softened post Tokyo CPI prints, headline and core-core measure were a touch firmer than expectations. Support was seen ahead of ¥136.50 with the level tested several times through the session.
• EUR and GBP are both marginally firmer, benefiting from the pressure on the USD.
• Cross asset flows are mixed; Hang Seng is up ~0.8% and e-minis are ~0.2% lower. BBDXY sits ~0.1% lower, 10 Year US Treasury Yields are ~1bp softer.
• In Europe today Eurozone PPI data and ECB-speak from de Guindos headline. Further out the ISM Services survey provides the highlight ahead of the weekend. We also have a number of Fed speakers scheduled to cross.