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


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.

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