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Dollar Weakness Continues Amid Lower Yields, A$ Aided By Higher Equities/Iron Ore Surge

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The BBDXY sits a touch above session lows, the index last near 1260.20 (still off -0.15% for the session). US yields sit lower across the board, with 2 to 10yr benchmark yields down a little over 2bps. This reversed earlier momentum where yields tried to go higher post some hawkish Fed speak.

  • These moves have weighed on USD sentiment, with 10yr Tsy futures above Wednesday highs.
  • USD/JPY got sub 154.00, aided by headlines from currency chief Kanda that the G7 is in agreement that excessive FX moves are harmful for economies.
  • We have since rebounded though back to 154.25/30. A better regional equity tone has likely weighed on yen performance versus crosses. We had dovish remarks from BoJ board member Noguchi earlier, but they didn't shift the sentiment needle.
  • AUD/USD is up +0.25%, tracking just above 0.6450. The pair shrugged off the jobs miss (although other detail was mixed), with the better equity tone and higher iron ore prices providing support.
  • NZD/USD is also higher, lagging AUD a touch, the pair last near 0.5925. EUR/USD was last near 1.0680.
  • Looking ahead, US jobless claims, Philly Fed manufacturing and existing home sales are all scheduled. Further Fed speak is also due.
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The BBDXY sits a touch above session lows, the index last near 1260.20 (still off -0.15% for the session). US yields sit lower across the board, with 2 to 10yr benchmark yields down a little over 2bps. This reversed earlier momentum where yields tried to go higher post some hawkish Fed speak.

  • These moves have weighed on USD sentiment, with 10yr Tsy futures above Wednesday highs.
  • USD/JPY got sub 154.00, aided by headlines from currency chief Kanda that the G7 is in agreement that excessive FX moves are harmful for economies.
  • We have since rebounded though back to 154.25/30. A better regional equity tone has likely weighed on yen performance versus crosses. We had dovish remarks from BoJ board member Noguchi earlier, but they didn't shift the sentiment needle.
  • AUD/USD is up +0.25%, tracking just above 0.6450. The pair shrugged off the jobs miss (although other detail was mixed), with the better equity tone and higher iron ore prices providing support.
  • NZD/USD is also higher, lagging AUD a touch, the pair last near 0.5925. EUR/USD was last near 1.0680.
  • Looking ahead, US jobless claims, Philly Fed manufacturing and existing home sales are all scheduled. Further Fed speak is also due.