Headlines:
- Dollar loses some ground as bond yields retreat
- ECB's Lane says expects more rate hikes but "a lot has been done already"
- ECB's Herodotou: There will be more rate hikes but we are very near neutral rate
- Recap: RBA kicks off the central bank bonanza with another 25 bps rate hike
- Germany October industrial orders +0.8% vs +0.1% m/m expected
- Germany November construction PMI 41.5 vs 43.8 prior
- UK November construction PMI 50.4 vs 52.0 expected
Markets:
- AUD leads, CAD lags on the day
- European equities lower; S&P 500 futures up 0.1%
- US 10-year yields down 2.2 bps to 3.553%
- Gold up 0.6% to $1,779.11
- WTI crude down 1.3% to $75.88
- Bitcoin up 0.2% to $17,012
It was a quiet session for the most part barring a late drop in bond yields, resulting in a drag on the dollar as we look towards North America trading now.
10-year Treasury yields nudged higher initially to 3.607% and that saw USD/JPY run up to test its 200-hour moving average around 137.43 in early European trading. The move didn't last though and as bond yields fell back and sit lower on the day, the dollar is also seeing a notable retreat with USD/JPY dragged back down to 136.00 - testing its 100-hour moving average at 136.09 currently.
Other major currencies were little changed mostly, before advancing against the dollar in the past hour or so. EUR/USD held at its own 100-hour moving average near 1.0480, before coming back up to 1.0525 now. GBP/USD also saw a drop to 1.2160 before picking itself back up to 1.2230 levels at the moment.
Elsewhere, AUD/USD is a notable gainer as it kept gains from the RBA policy decision earlier - pushing to 0.6730-40 levels currently, up 0.6% on the day. The loonie is the laggard though as it continues to be dragged down by the drop in oil prices since yesterday, with WTI crude down over 1% again today to just under $76.
All of this comes amid a more tepid mood in the equities space, with broader market sentiment still hinting that we are entering a bit of a tense period in the build up towards next week's US CPI data and FOMC meeting decision.
