Yen Firms In Early Trade

The Yen is firmer this morning as Asia participants react to softer than expected US data and the accompanying softening in US Treasury Yields. Escalating Sino-US tensions, centred on verbal jousting, after a bipartisan group of US politicians met with Taiwanese President Tsai aided the bid.

• USD/JPY prints at ¥130.85/95 ~0.3% softer this morning. The trend direction in USD/JPY remains downward, support is seen at ¥130.64 low from Apr 5.
• AUD/USD is a touch pressured, down ~0.1% and last printing $0.6710/15.
• Kiwi is little changed, ranges have been narrow with little follow through on moves.
• Elsewhere in G-10 moves have been limited thus far.
• Cross asset wise US equity futures are softer weighing on risk sentiment, e-minis are down ~0.2%. US Treasury Yields are marginally softer.
• Caixin Services PMI data from China provides the highlight in Asia. Further out we have initial jobless claims and Fedspeak from St Louis Fed President Bullard will cross.