Dollar Claws Back Earlier Losses, NZD Still Best Performer In The Past Week

The USD has clawed some losses as the Friday Asia Pac session has progressed. The BBDXY sits back close to unchanged at 1238.60. Earlier lows were at 1236.62.

• US yields have ticked up from earlier lows, which has helped. The 10yr last approaching 4.34%, against earlier lows sub 4.31%.
• Slightly better data out of Japan (implying upside GDP revisions from the capex side next week), haven't had a lasting positive impact on sentiment. Earlier lows in USD/JPY were at 147.61, and we now sit back at 148.10/15, close to unchanged for the session.
• NZD/USD remains slightly higher, last 0.6160, but drew selling interest on an earlier move above 0.6190. This high coincided with the Caixin China PMI beat.
• Still, NZD/USD is the best G10 performer in the past week, up 1.45% over this period (CHF is the next best at +0.91%.
• AUD/USD is back close to 0.6600, underperforming the NZD so far today. We have option expiries at nearby levels, which may be influencing spot. HK and China equities have generally remained weaker, which may be weighing as well (despite the PMI beat outlined above).
• Looking ahead, we have various final PMI prints in the EU/UK, while some ECB speak is due as well. Later in the US, the ISM prints, along with remarks from Fed Chair Powell.