The dollar is keeping steadier after a decent advance last week, though there isn't much appetite so far today yet. The Chinese central bank trimmed its benchmark lending rate but markets were expecting more and so that is weighing regional equities at the moment. The Hang Seng is down over 1% on the day currently.
The aussie and kiwi were bumped slightly but nothing that significant overall despite the yuan weakening further on the day. That might be one to watch in case there is some catch up later on. Here's a snapshot of things:
As you can see, the changes are extremely minor with less than 10 pips change among dollar pairs in general. The narrow ranges such as the 13 pips one for EUR/USD also exemplifies the lack of conviction ahead of European trading.
This comes as equities are also holding more tentative with US futures flattish. Meanwhile, 10-year Treasury yields are up slightly by nearly 3 bps to 4.280% on the day. The bond market remains a key spot to watch in all this and will stay that way ahead of the Jackson Hole symposium at the end of the week.
