Yen gains slightly despite recovery in bond yields
It's a bit of a perplexing start to the session as the yen is gaining ground amid a recovery in Treasury yields following yesterday's meltdown. 2-year yields are up by more than 5 bps now to 1.885% but the yen is seen holding steady against the rest of the major bloc.
The dollar is mixed as it slips against the likes of the yen and euro while gaining slightly against the kiwi. Narrow trading ranges are still prevailing for the most part so there isn't much to gather from the changes so far today.
The aussie was a notable mover earlier as AUD/USD jumped to a high of 0.6993 before falling off to 0.6960 levels and now creeping back up above 0.6980. There's plenty of push and pull as traders digest the RBA statement and implications amid short covering action from the rate decision itself.
Looking ahead, there's still plenty of focus on risk sentiment and the bond market. Major currencies may not be as reactive to that for the time being but I would expect more of a response later in North American trading.
With the euro also gaining ground against the dollar since overnight trading, that will be a spot to watch during the week as well.
