The aussie and kiwi are the laggards on the day so far
It's not exactly risk-off in markets but risk sentiment is indeed looking a bit softer as we begin the European morning. Poor US retail sales data from overnight and waning optimism on trade talks between US and China were the two key reasons as to why risk took a bit of a knock since overnight trading.
That has continued to keep the Japanese yen underpinned with USD/JPY trading at 110.35 currently with equities still seen softer in trading so far. The Hang Seng index is now down by 2% while US equity futures are lower by 0.4% at the moment.
Meanwhile, the aussie and kiwi are not only weighed lower by weaker sentiment but also as China's inflation data disappointed expectations earlier today; PPI figures heading back towards 0%.
As for the dollar, it is holding steady after yesterday's mixed performance where it lost ground against the most of the major bloc but posted gains against the likes of the pound (Brexit worries) and loonie (weaker manufacturing sales data). Changes in most dollar pairs are less than 0.1% at the moment with trading ranges staying relatively tight. Let's hope that European traders will kick some life into the trading day in the coming hours.
