Rumours abounded last week of China bringing an end to its strict 'zero' approach to COVID. On sneeze and a city gets locked down! (Not quite but outbreaks were swiftly met with mobility restrciitons that slammed local economies).
"Risk" trades surged on reopening, equities , AUD (and other FX at the expense of the USD).
On Saturday, though, health authorities in China denied an end to 'zero' any time soon. I posted on it earlier. ICYMI:
The early flows are back into the USD. AUD/USD is circa 0.6428 as an example. EUR, GBP, NZD yen and others are all lower against the USD also.
