Antipodeans Lodge Modest Outperformance In Limited Asia Trade

The Antipodeans outperformed in the G10 FX space during Asia hours, although the moves are very modest, with the major USD pairs generally operating within ~10 pips of Wednesday’s closing levels at typing. There has been nothing in the way of notable headline flow for market participants to latch onto.

• The NZD sits atop the G10 FX pile. Perhaps some spill over from the uptick in U.S. equities during the NY session has provided some support for the NZD. NZD/USD has traded as high as $0.6849 and last deals at ~$0.6840. With the Dec 23 high now breached, bulls turn their attention to the Dec 1 high ($0.6868). To the downside, the 21-DMA has acted as support since it was breached from below on Dec 22. Key support is some way lower, at the YtD low ($0.6702).
• USD/JPY traded as high as Y115.07, adding ~10 pips in the process. As mentioned, there hasn’t been much in the way of notable headline flow to drive broader macro sentiment, while JPY markets have thinned out ahead of the elongated Tokyo weekend. Technically, bulls look to initial resistance in the form of the Nov 26 high (Y115.37), with any sustained break there exposing the Nov 24 high/bull trigger (Y115.52). Bulls remain in control from a technical perspective, with bears needing to force a breach of the 20-day EMA to start reasserting some control.
• U.S. weekly jobless claims data and the latest MNI Chicago PMI print headline Thursday’s docket, with a call between U.S. President Biden & his Russian counterpart Putin also set to garner attention. Until then, headline watching will be at the fore.