USD Up From Earlier Lows, AUD Weakens Against Yen Amid Equity Losses

FX trends have been more subdued as the Monday Asia Pac session unfold. The BBDXY sits lower, but only marginally, last near 1228.75, with yen still slightly up for the session.

• Cross asset sentiment has seen a generally weaker equity tone, with US futures lower, led by the tech space. Regional equities are also lower outside of China/HK. US yields sit mixed.
• Earlier USD/JPY got close to Friday intra-session lows just under 146.50, but we couldn't test these levels. The pair is back to 146.90/95 in recent dealings.
• Q2 GDP revisions weren't as strong as expected, but still demonstrated that the economy avoided a technical recession in H2 of last year, thanks in large part to higher business Capex. This should help, albeit at the margin, the case for the BoJ to exit NIRP. Such speculation was very strong late last week. Note the next BoJ meeting is next week on the 19th of March.
• AUD/USD sits lower, last near 0.6610, around 0.2% weaker for the session. A better China/HK equity mood hasn't helped sentiment, with weaker commodity prices, particularly in terms of iron ore, weighing. AUD/JPY is down but hasn't tested the 100-day MA near 97.00 yet.
• NZD/USD is also down, but modestly outperforming the AUD. We were last near 0.6170. The AUD/NZD cross was last back near 1.0710.
• Looking ahead, it is a quiet start to the week data wise, with most focus on US CPI tomorrow. We do have some ECB and BoE speak later.