Asia overnight

The USD started the Asian session on the back foot following hawkish speak from
the BoE’s Huw Pill calling for significant and necessary response to the
government’s fiscal package as well as lower UST yields. Additionally, it is reported
yesterday that China’s policymakers had told state banks to be prepared for RMB
intervention. A modest move higher in UST yields as well as risk-off trading buoyed
the USD in quiet month- and quarter-end trading. The upside surprise in China
manufacturing PMI data helped sentiment a little in Asia. At the time of writing,
S&P500 futures and Asian bourses were trading lower. The SEK and CAD bore
the brunt of the bounce in the USD. The AUD and NZD received support from the
upside surprise in the China manufacturing PMI data.

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