AUD/JPY Down On Lower US Yields, AU Jobs Miss

USD trends are mixed across the G10 space. In the last part of trading, modest yen outperformance has emerged. The BBDXY is little changed last near 1247.85.

• USD/JPY sits modestly lower, last near 150.25, around 0.25% stronger in yen terms for the session so far. Lows sit at 150.14 (per BBG). Note pre US CPI levels came in at near 149.30, so we still have some way to close this gap.
• The yen has largely shrugged off the weaker Q4 GDP data from earlier and is taking its cue from lower US cash Tsy yields. We are around -2-3bps lower across the benchmarks, continuing from Wednesday's US move.
• AUD/USD is drifting lower, last near 0.6480/85, around 0.15% lower for the session. The uptick in the unemployment rate in Jan has driven a decent rally in local fixed income. Lows for AUD sit at 0.6478.
• AUD/JPY weakness may also be a factor, this pair is back to 97.30/35, we were at 97.85 earlier in the session.
• NZD/USD is lower but only marginally, and is outperforming the A$ at this stage. The pair was last near 0.6085. The AUD/NZD cross is around 1.0650, against earlier highs of 1.0675.
• Event risk is light for the remainder of the Asia Pac session.