Antipodean Data Dominate As G10 FX Hold Ranges

Antipodean data took the limelight in the Asia-Pac session, with New Zealand's Q2 GDP beating expectations and Australian Aug labour force figures lacked any major surprises. The Aussie and Kiwi dollars outperform in the G10 FX basket, albeit by very thin margins as overall volatility in the space remained subdued.

• The kiwi dollar turned bid as New Zealand's Q2 GDP growth printed at +1.7% Q/Q after an unrevised 0.2% contraction recorded in Q1. The sequential outturn exceeded the median estimate of +1.0% but falling slightly short of the RBNZ's +1.8% projection. Initial market reaction has been largely unwound as the session progressed. RBNZ pricing is little changed but ASB lifted their terminal OCR level forecast by 25bp to 4.25%.
• The Aussie ticked higher as the latest batch of Australian jobs data lacked any major surprises. Employment growth was marginally softer than forecast (+33.5k vs +35.0k expected), while the unemployment rate nudged up to 3.5% versus 3.4% expected amid slightly wider participation. The report is unlikely to shift RBA views ahead of their October meeting.
• AUD/NZD slipped on the release of NZ GDP data, moving in tandem with Australia/New Zealand 2-Year swap spread. The pair returned to positive territory as participants digested Australian jobs figures, with the swap spread returning to its previous levels. Spot AUD/NZD last operates ~10 pips higher on the day.
• Spot USD/JPY advanced as the yen slipped to the bottom of the G10 pile. Renewed yen weakness could be linked to a RTRS report flagging comments from Japan's ruling party official Katayama, who said that "conducting solo FX intervention likely won't be that effective in stemming sharp yen falls" The record trade deficit reported by Japan may have increased yen vulnerability.
• Focus turns to to U.S. advance retail sales, industrial output, Empire M'fing Survey, Philly Fed Business Outlook & initial jobless claims. ECB's de Guindos and Centeno will speak at conference events.