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Antipodeans Under Pressure Pre-RBNZ, USD/JPY Ticks Higher

FOREX

The Antipodeans trade on the defensive in a slow start to the Asia-Pac session, where headline catalysts have been few and far between. Major FX pairs are happy to hug tight ranges.

  • NZD/USD overnight implied volatility lodged a fresh one-month high Tuesday and remains elevated as we type.
  • USD/JPY has turned bid as cash Tsy trading resumed in Tokyo, with yields creeping higher across the curve. The pair is yet to test yesterday's high.
  • The RBNZ's Monetary Policy Statement headlines the Asia-Pac economic docket today. After hours, focus will turn to UK inflation data, flash EZ GDP and U.S. retail sales.
  • Apart from the post-MPS presser with RBNZ chief Orr, comments are due from Fed's Bowman. Elsewhere, the FOMC will release the minutes from its most recent monetary policy meeting.

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