Antipodean Data Surprise On The Upside, Bolstering Local Currencies

Strong economic data released out of the Antipodes provided support to regional currencies, helping G10 FX space move on after FOMC monetary policy decision. A firm beat in New Zealand's Q1 GDP pushed the NZD higher, with another bout of purchases seen as bets for the next OCR hike were brought forward. NZD/USD roughly halved its post-FOMC losses and briefly showed above the $0.7100 mark, with the Kiwi comfortably outperforming its G10 peers.

• AUD bounced after the release of Australia's monthly labour market report, which saw an unexpected dip in the unemployment rate, largely driven by faster than forecast employment growth. Strong jobs data outweighed the impact of an earlier speech from RBA Gov Lowe, who noted that "the conditions for an increase in the cash rate could be met during 2024, while in others these conditions are not met".
• AUD/NZD went offered a day after its 50-DMA crossed below the 100-DMA. The rate descended past yesterday's low, trimming losses after the ABS published its jobs report.
• DXY stabilised around two-month highs, following Wednesday's surge driven by the latest FOMC policy announcement.
• The PBOC set its central USD/CNY mid-point at CNY6.4298, 30 pips above sell-side estimate. The redback was unfazed by the softer than expected fixing and USD/CNH ebbed lower.
• U.S. initial jobless claims, final EZ CPI, Norges Bank & CBRT MonPol decisions as well as speeches from ECB's Villeroy, Lane, Elderson & Visco take focus today.