From Marc Chandler at Bannockburn Global Forex:
Overview: A less hawkish Reserve Bank of New Zealand and a slightly softer than expected January CPI from Australia appears to have sparked a broad US dollar rally. The Dollar Index is up almost 0.25%, which, if sustained, would be its best day since the US CPI was reported on February 13. Most of the greenback's strength was seen in the Asia Pacific region, and it has steadied in the European morning. The dollar approached JPY150.80 and there are large options at JPY151 that expire today. The yen is the strongest of the G10 currencies, off less than 0.15%. The Antipodeans have been hit the hardest. The Australian dollar is off around 0.75% and the New Zealand dollar has been tagged for 1.2%. The euro briefly traded below $1.08 for the first time in a week. Emerging market currencies are also weaker, with the South African rand, Thai baht leading the drop with 0.65%-0.85% declines. With herculean efforts the dollar continues to hold slightly below CNY7.20.
Equities are under pressure. All the large markets in the Asia Pacific region but South Korea, sold off. That included a 2% slide in the Chinese shares that trade in Hong Kong and a 3.8% slump in the Shenzhen Composite. Europe's Stoxx 600 is giving back yesterday's nearly 0.2% gain. US index futures are modestly softer after a mixed performance yesterday. European 10-year yields are mostly softer, but UK Gilts are flat. The 10-year US Treasury yield is a basis point lower near 4.29%. The stronger dollar has weighed on gold. It had poked above $2039 yesterday but settled lower on the day and follow-through selling today has seen in slip below $2025 before finding support. April WTI rallied more than $3 a barrel from Monday's low to $79 yesterday. An 8 mln-barrel build in US stocks according to API estimates seemed to blunt the speculation that OPEC+ will extend its output cuts. April WTI is trading softer, around $78, but within yesterday's range....
....MUCH MORE
