Yuan Strength Takes A Breather; After Effects Of Febrile US Protests Felt

A back and forth session so far as markets take stock of protests in the US Capitol. DXY has opened slightly lower in Asia, last down 0.163 at 89.368.

• USD/JPY caught bid Wednesday as the NYSE said it is proceeding with a plan to delist three Chinese telecoms, which sent USD/CNH higher inspiring demand for the greenback. Reported stop-loss buying helped push the rate higher ahead of the WMR fix. It trimmed gains later in the day, amid risk aversion seen as Trump loyalists attempted to disrupt the certification of results of the U.S. presidential election. The pair last at 103.10 after touching 103.40 yesterday.
• AUD/USD also rose during the session, touching a cycle high of 0.7820. The pair last trades flat at 0.7800 after dropping in the wake of weaker trade data. NZD/USD has moved in tandem.
• EUR/USD saw some upside early on in Asia, but dropped back after touching 1.23445, just short of the overnight high of 1.2349. MNI sources note there could be a small barrier at 1.2350. Last changes hands at 1.2330.
• GBP/USD is up 10 pips on the session, last at 1.3619. The Brexit deal honeymoon seems to be well and truly over with the pair 2^nd worst G10 performer against the USD since Tuesday. The pair bounced off 1.3540 on Wednesday, the 2021 low so far which was also tested on Monday.
• PBOC fixed USD/CNY at 6.4608, slightly weaker for the yuan than yesterday after strengthening for a total of 645 pips in 2021 so far. The central bank continued its post New Year drain, withdrawing CNY 110bn from the financial system, which equates to a net drain of CNY 510bn this week.
• Focus moves to U.S. initial jobless claims & ISM Services, flash EZ & Italian CPIs, German factory orders as well as Fedspeak from Harker, Barkin, Bullard, Evans & Daly.