The aussie is mildly weaker but ranges are narrow to start the day
The market is still sort of searching for direction today as we see Asian equities keep a little weaker while Treasury yields are also a tad lower ahead of European trading.
US 10-year yields are down 1.2 bps to 1.63% but there is no strong indication of major risk-off momentum amid a flurry of coronavirus headlines since Asia Pacific trading.
USD/JPY is continuing to trade narrowly around 109.85-00 for now, with large expiries seen at 110.00 likely to keep price action in-check ahead of the US jobs report release.
The euro and pound are susceptible to further downside pressure against the dollar after the move lower yesterday with EUR/USD flirting with a firm daily break below 1.0981 while cable slipped to fresh lows for the year but stays supported around 1.2920 for now.
The aussie is keeping mildly weaker as gains this week start to evaporate, with AUD/USD tracking back below both its key hourly moving averages as well.
Looking ahead, the key focus will stay on coronavirus headlines ahead of the weekend as well as the US non-farm payrolls later at 1330 GMT. In any case, just be mindful of profit-taking activity ahead of the weekend following the Wall Street rally this week.
