Further reduction of bets on an interest rate cut by the Fed in March propelled the USD Index (DXY) to a new yearly high and aligned with the extra narrative suggesting the ECB could wait until the summer to trim its rates, which eventually appears to have bolstered the late bounce in the single currency.
Asian markets look set for another torrid session on Thursday, with investors still reeling from the China-fueled weakness and strong rise in global bond yields the previous day. Highlights on the regional economic calendar will likely be Japanese machinery orders, New Zealand manufacturing PMI, Australian unemployment, and possibly the latest snapshot of Chinese foreign direct investment. Of all those indicators, China's FDI would be the most significant, especially in light of the 'data dump' from Beijing on Wednesday and distinctly lukewarm reaction in Chinese asset markets that followed.
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