The Australian dollar leads the way
The aussie gained earlier on the back of improving business conditions seen in a NAB survey but those gains were quickly tempered with in the hours thereafter. However, the currency is regaining some poise again ahead of European trading and is leading gains among major currencies with markets still looking cautiously optimistic about trade talks this week.
Meanwhile, the dollar is still holding on to gains from yesterday but is trading mixed against most currencies to start the new day. Trading remain light for the most part with EUR/USD and GBP/USD sitting in a 12 pips and 19 pips range respectively.
The yen is still sitting weaker as USD/JPY buyers continue to push forward with gains above the 110.00 handle. Risk sentiment remains slightly buoyant as well and that's helping to keep the yen offered as we await European traders to join us. US equity futures are up by 0.5% while US 10-year yields are up by 2.3 bps to 2.677% currently.
Looking ahead, there is little on the economic calendar to really shake things up. Hence, expect markets to continue paying attention to trade talks in Beijing and trading will center around the ebb and flow today.
