Dollar Softens On Lower Yields, A$ Shrugs Off Jobs Miss

The USD has been slightly offered in the first part of Thursday trade. The BBDXY sits close to 0.10% weaker, but is up from session lows, last near 1237.40 (session lows at 1236.64).

• AUD/USD dipped close to Wednesday session lows of 0.6526, post a sharp fall in Dec jobs, which was much weaker than expected. We climbed from there though, last near 0.6560, just off session highs (0.6567).
• The ABS noted that there has been a shift in the timing of employment growth, which may have impacted today's figures, while the unemployment rate was steady at 3.9% as well. A further sharp fall in China equities hasn't impacted sentiment for the AUD.
• NZD/USD has drifted a little higher, last near 0.6120/25 within recent ranges. Food prices fell 0.1% m/m in Dec. House sales improved for Dec, but from a low base.
• USD/JPY has been supported on dips sub 148.00. Core machine orders for Nov were weaker than expected, down 4.9% m/m, placing question marks over the Capex outlook. Still, with little expected from the BoJ next week, yen has traced familiar ranges.
• Some moderation in US Tsy yields, albeit unwinding only a fraction of Wednesday's gains has likely helped at the margin. US equity futures are lower but only modestly.
• Looking ahead, focus will turn to US jobless claims and Philly fed manufacturing data. Wires will continue to be monitored for any significant headlines emanating from officials at the World Economic Forum in Davos.