The USD gathered strength in Asia trading, supported by higher US yields overnight. The 10y US Treasury yield retraced very marginally to 2.586% but still net 6.5bps higher than yesterday’s open. This helped push USDJPY to almost a three-month high of 102.7. EUR edged lower to 1.361, while NZD dipped towards its March low of 0.84. AUD pushed higher initially towards 0.93 on stronger-than-expected GDP, but has since retraced all the way back to 0.926. AUDNZD broke the 200day moving average and is now trading above 1.10 levels.Most EM Asia FX fell, albeit by only 0.1%-0.3% against the USD. USDKRW rose to 1026.5, USDPHP to 43.90 and USDMYR to 3.234. The IDR and INR held flat at 11819 and 59.40. The PBoC lowered the USDCNY fix to 6.1693 today after fixing above 6.17 yesterday.
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