USD lower in Asia trade as 'risk-on' mood picks up (here are the 3 reasons why)

Some positive developments for the risk trade in the past few hours:

1. The PBOC is taking steps to ease the liquidity crunch, injecting funds again today into the banking system, interbank lending rates have fallen back a little

2. The prospect of improving relations on the cards for the US and China:

• China calls for the relationship with the US to be put back on a predictable and constructive track

3. US coronavirus stimulus talks got off to a positive start ... there is more work to be done but the beginnings look constructive:

• Republican senator Collins says meeting with Biden has not concluded a deal, but follow-up to come
• US President Biden says many areas where Republican coronavirus relief proposal does not address urgent issues

Using AUD/USD as a barometer of the mood:

Equities on the up also, Globex ES +0.5%