Buoyant Business Surveys Boosts NZD, High Beta FX Outperforms Elsewhere

The USD BBDXY index sits down 0.15%, last near 1228, unwinding some of Wednesday's gains. Higher beta FX, led by the NZD, has outperformed. JPY has been a laggard, likely on account of weakness against the higher beta plays.

• There was a modest risk off tone in the first part of trade, as the market was left disappointed by AI bellwether Nvidia's earnings update. Nasdaq equity futures were comfortably off more than 1% at one stage.
• We are now away from these lows though (-0.70% last for Nasdaq futures). Reports Apple is buoyant on the outlook for the next Iphone has likely help stabilize sentiment.
• From lows of 144.22, USD/JPY last track near 144.70, close to session highs.
• NZD/USD is at 0.6290 in latest dealings, just off session highs (0.6295), up 0.75% for the session. Forward looking ANZ business confidence and activity outlook jumped in August to multi-year highs but current activity remains very weak.
• AUDNZD is down 0.5% to 1.0815 with the pair falling to 1.0817 following very strong NZ ANZ business confidence data and then stepping down to 1.0798 after Aussie investment data showed a 2.2% q/q Q2 contraction. It found support at 1.08.
• AUD/USD is up 0.30%, last near 0.6800, SEK is up 0.30%, NOK 0.20%.
• US yields have largely been steady, with earlier cautious comments from the Fed's Bostic not impacting sentiment.
• Later, US revised Q2 GDP, July trade & inventories and jobless claims print, as well as the European Commission survey for August. We hear again from the Fed's Bostic, while The ECB's Lane also speaks.