Forex Today: USD, T-yields correct lower in Asia, UK jobs – Up next

A quiet Asian session today, with no major data reported except for the Australian wage price index, which missed forecasts. Broad based US dollar correction remained the underlying theme in Asia, as Trump win-led optimism continues to fade gradually and drives the treasury yields lower.

Focus now remains on the UK labor market report ahead of FOMC member Bullard’s speech, which is lined up for release during the EUR session, while we have a flurry of macro updates from the US docket, including US industrial production, PPI and EIA crude oil inventories data. Besides, BOC policymaker Lane is due to speak about globalization at the Centre for International Governance Innovation, in Ontario.

Main topics in Asia

Asian stocks on a relief rally, Nikkei 225 - top-gainer

The stocks on the Asian bourses advanced on Wednesday, tracking a positive close on the Wall Street overnight, while ongoing retreat in the treasury yields amid stalling Trump effect, also offers respite to the region’s indices.

Statistics New Zealand: We will post a revised release calendar by the end of the week

Statistics New Zealand published on its temporary web page today that the economic calendar for this week has been revised in wake of Monday’s twin earthquakes.

PBOC weakens Yuan for the 9th day, longest losing streak since Dec 2015

The Chinese central bank, PBOC, set the Yuan mid-point at 6.86 per dollar, down 97 pips from the previous close, lowering the local currency for the ninth consecutive.

Key focus for the day ahead

UK: Focus on labour market data - TDS

Research Team at TDS, suggests that markets should start paying more attention to UK labour market data as we expect that to be the first place where business uncertainty affects macro data.

USD: Too far too fast? - Rabobank

Jane Foley, Senior FX Strategist at Rabobank, suggests that the post-election rally in the USD is showing signs of running out of steam as the upward pressure on yields relents. 

US 2-year treasury yield hovers at highest since April

The yield on the US 2-year Treasury note hovers around 1%; the highest level since April, although the bullish momentum appears to have stalled.

Another earthquake of 4.6 magnitude hits New Zealand

Reuters reports latest headlines of another earthquake that hit New Zealand almost near the same place it occurred on Monday.