USD Ticks Lower On Yield Pullback, A$ and NZD Aided By Higher China Equities

Modest USD losses have been evident in recent G10 trading, albeit well within recent ranges. The BBDXY is off a modest 0.05%, last near 1244.2. US yields are tracking lower, down by 1.5-3.2bps across the curve, led by the front end. There hasn't been any clear headline drivers, but the recent sharp move in yields higher may be drawing some buying interest in the space today.

• The AUD and NZD are both up around 0.2%. AUD/USD last near 0.6500. We are still some distance from Monday highs just above 0.6520. Q4 retail sales were +0.3% q/q, against a 0.1% forecast, although Q3 were revised to a -0.1% fall.
• NZD/USD is near 0.6070, up by a similar amount. Outside of the US yield move, we have rebounding China shares amid fresh signs of state support (from the sovereign wealth fund), which is likely aiding sentiment at the margins.
• USD/JPY sits a touch lower, last near 148.55.
• Still to come is the RBA decision, which will be the main focus later this afternoon.