Dollar Steady, NZD Sees No Follow Through Strength Post CPI Print

The USD sits relatively steady in early Wednesday dealings, but overall ranges have been muted. The BBDXY last near 1238.40, a touch below Tuesday NY closing levels.

• NZD/USD spiked in early trade on stronger non-tradables Q4 inflation. A firmer OIS backdrop across RBNZ meeting dates has helped, although gains above 0.6100 in the pair have had no follow through.
• USD/JPY sits a touch lower, last around 148.20. Dec trade data saw a slightly better export growth backdrop (+9.8%y/y versus 9.2% forecast). The trade position was slightly better than expected (¥62.1bn, versus a -¥122.6bn projection). Imports were slightly weaker than forecast (-6.8% y/y, versus -5.4% forecast).
• AUD/USD is a touch higher, last in the 0.6580/85 range. We had January preliminary PMIs print earlier, with manufacturing moving back above 50.0, but the market didn't react in the FX space.
• US equity futures are in positive territory led by the Nasdaq (with Netflix's earnings helping sentiment). US yields have had a steady start to Wednesday trade, with a slightly firmer bias.
• Coming up shortly is January preliminary PMIs for Japan, otherwise the data calendar is empty for the rest of the Asia Pac session.