[MARKET ANALYSIS] DXY softens amid gains in major counterparts as JPY continues to strengthen post-election and with AUD outperforming on hawkish RBA rhetoric

DXY: -0.2%

• Dollar weakened in Asia-Pac trade amid gains in its major counterparts and following the prior day's choppy performance, which was not helped by soft US data, including Retail Sales, while all attention turns to the delayed January Nonfarm Payrolls report.

EUR/USD: +0.1%

• Eked slight gains and reclaimed the 1.1900 status, but with price action contained amid very few fresh catalysts from the bloc, while comments from ECB's de Guindos did little to shift the dial as he reiterated that the current level of rates is appropriate and said recent euro strength is fully consistent with the assumptions included in the ECB's projections.

GBP/USD: +0.1%

• Rebounded overnight but with the recovery lacking in strength after retreating yesterday from resistance near the 1.3700 handle, and with a very quiet calendar for the UK so far this week until the GDP data on Thursday.

USD/JPY: -0.4%

• Continued to retreat post-election amid ongoing bets for sooner BoJ policy normalisation, while demand for USD/JPY is also constrained amid the absence of Japanese participants due to National Founding Day.

Antipodeans: AUD/USD +0.7% / NZD/USD +0.3%

• Benefitted from the softer dollar with AUD/USD the outperformer after reclaiming the 0.71 handle for the first time in 3 years, with tailwinds seen following comments from RBA's Hauser that inflation is too high, which they can't let persist and will do what is needed to bring inflation back to the target band.