The news out of China over the weekend is that they are not backing down from their zero-Covid policy and that is enough to keep markets on edge again. On Friday, re-opening hopes is what arguably fueled optimism in the risk mood and we are seeing fairly more tepid sentiment today to start the new week.
The dollar opened today with a gap higher and even oil also opened with a gap down, currently lower by 1% at $91.43 on the day.
While some of the dollar's gains have been chipped away, it is still steadier for the most part and keeping a slight advance across the board. EUR/USD started down at 0.9900 but is now up to 0.9940, still down 0.2% on the day though.
USD/JPY is keeping rather range-bound between 145 and 150 in the bigger picture, up 0.4% to 147.20 at the moment. The commodity currencies are the ones with less appetite today, with USD/CAD up 0.3% to 1.3525 but that still pales in comparison to the Friday plunge from 1.3700 to 1.3480 amid a solid Canadian jobs report and higher oil prices at the time.
Meanwhile, AUD/USD is down 0.6% to 0.6430 as price action continues to sit in between 0.6200 and 0.6500 in the bigger picture for now:
