AUD/NZD Makes Fresh Highs, A$ Supported Amid Hawkish RBA calls

FX markets have started Friday's session in fairly muted fashion. The BBDXY hasn't drifted too far away from the 1238 level, holding losses from Thursday's session. US yields are mixed, flat at the front end, but the 10yr has edged back to 3.605%, around 1bps higher. US equity futures are a touch higher at this stage. The US Senate is voting on the debt ceiling agreement.

• AUD/USD is holding close to Thursday session highs, last near 0.6580, outperforming at the margins. The minimum wage/award wage was raised by 5.75% by the Australian Fair Work Commission (see this link). Whilst less than the 7% unions were after, it will still impact a good proportion of Australia's work force. Several sell-side forecasters have turned more hawkish, with ANZ raising its peak RBA projection to 4.35% (from 4.10%).
• The AUD/NZD cross has been supported, making fresh highs near 1.0855. NZD/USD is around 0.15% weaker, last near 0.6060. Earlier data showed Q1 building work done better than expected at 0.60% q/q (-2.0% forecast), but terms of trade were close to forecasts. The data didn't meaningfully impact NZD sentiment.
• USD/JPY has drifted a touch higher, the pair last at 138.95/00, against earlier lows of 138.65/70.
• Coming up we have Australian home loans data but that is unlikely to shift sentiment, otherwise the data calendar is clear.