The aussie is weighed down by poor Chinese data earlier
The yen is holding firmer after a beat down in overnight trading, where we saw USD/JPY jump from 105.30 to 106.80 as Trump eases on his tariffs threat against China. The yen is holding firmer amid a mild recovery in bonds with Treasury yields lower across the curve.
10-year yields are down by 3 bps at 1.674% currently amid a better performance in Asian equities and flat tones in US futures.
Meanwhile, the aussie is weaker following a poor data dump from China where industrial production and retail sales missed heavily with the former recording its weakest annual growth pace since February 2002.
Other major currencies are more measured with little change on the day as narrow trading prevails ahead of the European morning open.
Looking ahead, it's all about the risk appetite and whether or not traders/investors are convinced that the relief from the US-China headlines yesterday could lead to anything more.
In the big picture, I'm on the "No" camp but let's see how markets will react and whether or not we see any changes to the technical picture in the mean time.
