The market is in a more positive mood to start the day
The aussie is leading gains as risk is faring better on the day, after extending gains following news on China reducing tariffs against the US starting from next week.
That helped to give risk trades a further lift, with Asian equities rallying strongly while we are seeing bond yields keep higher as well as a result. In turn, that is also helping to see USD/JPY a little higher with buyers trying to challenge the 110.00 level.
The dollar is keeping more steady in general amid tight ranges against most other major currencies. EUR/USD is particularly vulnerable to a downside break under 1.0990-00 but is staying more calm for now - only a 7 pips trading range so far today.
Meanwhile, the pound is the laggard as price action keeps under the 1.3000 handle while testing support at around 1.2975-85 with further bids and key support seen at 1.2950-60.
Looking ahead, it is still all about risk as we look towards the European morning. There is little on the data docket to shake things up so expect the main focus to stay on how the market reacts to more potential headline risks before North American trading.
