​Dollar Firms, Aided By Higher Yields ​​​

The USD has firmed as the session has progressed. The BBDXY is up around 0.25% for the session so far, putting the index above 1254.00. Highs post the FOMC in NY trading were around 1256.75. The USD has been aided by a 3-4bps move higher in yields (2-7yr part of the curve), while softer equity sentiment in the region has also weighed.

• AUD/USD is among the weakest performers, down over 0.50% at this stage, and back sub 0.6830. This comes despite employment data comfortably beating expectations. Commodities are weaker in terms of oil and copper, with weaker China activity data a potential catalyst, although iron ore is trading resiliently (last above $109/tonne).
• NZD/USD is down 0.30%, last under 0.6440. NZ also saw better data, this time in terms of Q3 GDP, which has buoyed NZ bond yields. This has likely help NZD outperform on a cross basis. AUD/NZD is back to the low 1.0600 region, against NY session highs above 1.0600.
• NOK is also weaker by 0.50%, with USD/NOK back above 9.7700, as oil prices weigh.
• USD/JPY has been supported on dips, the pair last 135.75/80. The yen has slightly outperformed on a cross basis.
• Looking ahead, in the US, retail sales data print, there are also jobless claims and the Philly and NY Fed surveys. A number of European central banks meet with the focus on the ECB and BoE.