USD Stays Afloat Amid Broader Correction

The DXY showed at its best levels in more than a week but eased off highs as U.S. yields corrected Tuesday's surge. BBG trader sources flagged USD purchases by model-based accounts, which reportedly triggered stop-loss orders. The greenback remained one of the best G10 performers in the Asia-Pac session nonetheless, giving way only to the yen. USD/JPY pulled back from four-month highs as its RSI returned below the 70 threshold.

• NZD went offered as New Zealand reported two new Covid-19 cases in the community, although later in the day the gov't announced that the snap lockdown implemented in Auckland will expire at midnight as planned. AUD/NZD resumed gains after snapping an eight-day winning streak yesterday.
• Selling pressure hit NOK as crude oil started the session on a softer footing and the currency failed to shake off its weakness later on, even as oil recovered.
• USD/CNH extended Tuesday's gains and rose to its highest levels since Feb 9 on the last day of China's LNY market closure.
• Focus turns to the minutes from the FOMC's most recent MonPol meeting, UK inflation data, Canadian CPI, U.S. PPI, retail sales & industrial output as well as speeches from Fed's Barkin & Rosengren, BoE's Ramsden & Norges Bank Dep Gov Bach.