Major currencies are in a more defensive posture to start the day
The yen is retracing overnight losses with USD/JPY holding near session lows at 106.37 currently. This comes despite the fact that markets are still mildly more optimistic as we look to begin European trading.
Asian equities are sitting higher while US futures are up by around 0.2% currently. Meanwhile, Treasury yields are also a tad higher on the session, though off highs seen earlier in the Asia Pacific morning.
As such, the dollar is maintaining a more steady footing on the day though the aussie and kiwi are mildly lower once again. In particular, NZD/USD is threatening a fall below 0.6300 as the technical breakdown continues.
Looking ahead, I reckon markets will eventually find a more coordinated view on risk so we'll have to see if equities and bonds will side with currencies or the opposite. Amid month-end flows as well, it could potentially be a bit of a choppy/messy end to the trading week.
