Antipodean Divergence Unfolds, Safe Havens Slip

The Aussie dollar leads gains in G10 FX space at the margin after Treasury Secretary Kennedy (who also sits on the RBA Board) said that the balance of risks to inflation outlook were to the upside, pointing to the opportunity for monetary policy to "normalise." Spot AUD/USD climbed to $0.7500 but rejected that round figure and has now trimmed some gains.

• The kiwi dollar has lost some altitude, with NZD/USD falling through yesterday's low in the process. The latest ANZ survey showed that consumer confidence in New Zealand plunged to an all-time low (data begins in 2004) amid rising costs of living, rising interest rates, retreating housing market and spread of Omicron.
• Safe haven currencies JPY and CHF are showing some weakness as U.S. e-mini futures trade in the green. Japan's FinMin Suzuki reiterated that sudden FX moves are "undesirable," adding that the BoJ does not directly target currency rates.
• U.S. NFP report provides the main point of note on today's data docket, with flash EZ CPI and a slew of Manufacturing PMI readings (including China's Caixin PMI) also due.
• Comments are due from ECB's de Cos, Centeno, Schnabel, Knot & Makhlouf, Fed's Evans & Riksbank's Ohlsson.