The aussie and kiwi are on the back foot
The greenback is holding more steady as we approach mid-week trading with markets retracing a bit of the subdued sentiment in overnight trading. Equities are mildly higher while Treasury yields are also a tad firmer at the start of the European morning.
That said, the aussie and kiwi are holding weaker at the moment though. Both currencies are partially weighed down by a weaker yuan once again but they both have their own stumbling blocks today as well.
Australian Q2 construction activity was weak and that's not helping with sentiment, while the kiwi has to contend with RBNZ governor Orr jawboning the currency earlier in the day.
Other than that, there is little change among major currencies with the yen holding a tad weaker amid the mildly better risk tone noted above.
Looking ahead, the risk mood will be a key factor to watch out for so pay attention to equities and bonds once again. I still reckon markets are feeling more cautious overall but given the lack of trade headlines since Monday, we may observe some calm in the meantime.
