FX Update: The dollar traded mostly softer
FX Update: The dollar traded mostly softer as the global equity rebound extended in Asia after Wall Street yesterday completed its biggest two-day rebound in just over two years. The U.S. currency has been correlating inversely with global stock market direction of late on the causation that risk-on phases have seen investors divest of dollars and dollar assets in favour of higher yielding opportunities, and vice versa. The narrow trade-weighted USD index has declined 0.3% to 89.94, earlier clocking a four-session low at 89.88. Cable and USD-CAD have remained within their respective ranges from yesterday, while USD-JPY and yen crosses have traded lower in Tokyo, where markets have reopened after a long weekend. Japan's Nikkei 225 has bucked the global equity rebound, closing with a 0.8% loss, while U.S. equity index futures are also lower. AUD-USD saw a four-day high at 0.7874, aided by data showing Australian January business conditions rising to 19 from 13, with overall confidence lifting to a reading of 12, up from 11. The rand took a hit after the South African Congress ordered President Zuma to resign.