Dollar Upticks Sold, A$ Outperforms Modestly

Dollar upticks have generally been sold through Friday's Asia Pac session. The BBDXY last tracked just under 1221, which is right on Thursday lows for the index. Earlier highs were at 1223.60.

• Some early USD support was evident, as US TSY futures ticked lower. This saw USD/JPY get back to 147.47, but we now sit back at 141.85/90. There wasn't much follow through to the US Tsy move. Cash US Tsys sit around 3-4bps firmer in yield terms.
• Elsewhere, Japan FinMin Suzuki stated its important FX markets reflect fundamentals and that FX moves are being watched closely. The comments didn't impact FX sentiment.
• AUD/USD has grinded higher, last near 0.6720, up 0.30% for the session. The better tone to Hong Kong and China equities, following property easing measures and more liquidity support have been A$ positives.
• NZD/USD is trailing modestly but still higher, last in the 0.6215/20 region. Both currencies remain sub early Thursday highs.
• EUR/USD hasn't been able to meaningfully breach the 1.1000 handle.
• Looking ahead, we have PMIs on tap for the UK and EU, likewise for the US later.