Free Trial

Dollar Lower, But Yen Underperforms AUD & NZD Post AU Jobs Beat

FOREX

The BBDXY has fallen through Wednesday lows, last under 1230 (1229.6). We haven't breached Nov 29 lows yet (1228.70). The latest round of USD weakness was driven by the Australian jobs beat. AUD/USD spiked close to 0.6690, but has settled now at 0.6685/90 (+0.40%).

  • A$ gains have spilled over to NZD. NZD/USD is back to 0.6210 (+0.60%), so completely unwinding weakness post the Q3 GDP miss. AUD/NZD is near 1.0775, so still higher for the session, but seeing resistance near 1.0800.
  • The firmer tone to US equity futures, Eminis +0.33%, Nasdaq +0.48%, has no doubt aided the risk sensitive NZD's rebound.
  • USD/JPY is back near 142.50/55, which is off session highs (142.90), but some underperformance versus AUD and NZD. This fits with the equity risk on theme from US futures.
  • US yields are continuing to fall though, led again by the front end, (off 5bps to 4.38%), while the 10yr is sub 4.00%. These moves may keep the market happy to fade USD/JPY upticks.

To read the full story

Close

Why MNI

MNI is the leading provider

of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.

Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.