FX Update: A risk-on theme continued to course through forex markets
FX Update: A risk-on theme continued to course through forex markets, which has propelled AUD-JPY, a cross with a relatively high beta characteristic, up by over 0.6% in making an eight-day high at 78.94. USD-JPY, meanwhile, rose for a third consecutive session, this time printing a new seven-week high at 110.70. EUR-JPY and other Yen crosses have also been on the ascent, with the Japanese currency losing safe haven premium. The MSCI Asia-Pacific (ex-Japan) equity index rallied by over 0.5% to four-month highs, while Japan's Nikkei closed with a 1.4% gain, at eight-week highs. S&P 500 futures are up 0.3% in the overnight session after the cash version of the bellwether index crossed the closing line on Wall Street yesterday with a 1.3% advance. U.S. President Trump said that the March 1 deadline on the U.S.-China tariff-warring truce could be extended so long as progress is being made, which gave investors some added tonic, fitting market narratives suggesting that the two sides are ripe for compromise given the self-inflicted headwinds bearing down on both economies. Outside the cases for the USD-JPY pairing and Yen crosses, EUR-USD and other Dollar majors have been relatively subdued. AUD-USD hit a one-week high at 0.7136, with the Aussie benefitting from the risk-on vibe. EUR-USD has drifted moderately lower, back to the lower 1.1300s after yesterday's rebound from a three-month low at 1.1257 capped out a 1.1341.