AUD Firms As Labor Market Remains Tight

The AUD is the strongest performer in the G-10 space at the margins. The March employment report did not show any signs of the labour market easing, the unemployment rate held steady at 3.5% and the participation rate rose a touch to 66.7%. Elsewhere in G-10 ranges have been narrow with little follow through in a relatively muted Asian session.

• AUD/USD firmed in the aftermath of the print, post US-CPI highs remain intact for now as resistance was seen at $0.6720 and the pair marginally pared gains to sit ~0.3% higher.
• AUD/NZD briefly dealt above $1.08, the handle has emerged as a key level for bulls as they have been unable to sustain a break of this level in recent dealing.
• NZD/USD is a touch firmer, the pair last prints at $0.6215/20 ~0.1% higher today. A narrow $0.6200/20 range has been observed through the session as the NZD hasn't followed through on moves.
• Yen was firmer in early trade, USD/JPY dropped below the ¥133 handle as North Korea conducted their latest missile test. Support was seen below this level and the pair pared losses to sit a touch firmer.
• Cross asset wise; e-minis pared early losses to sit a touch firmer. BBDXY is little changed and US Treasury Yields are marginally higher across the curve.
• UK GDP and final German CPI provide the highlights in Europe. Further out we have US PPI and Initial Jobless claims.