May 30, 2024 00:36 GMT
Early Risk Off Tone In FX, Aust Capex Data & NZ Budget Coming Up
FOREX
Early G10 FX trends are skewed slightly towards risk off, with yen the only G10 currency up against the USD at this stage (the A$ is around flat). The USD BBDXY index has ticked higher to 1256.15. This is highs in the index back to May 14.
- US equity futures have opened weaker and are holding lower. Eminis last off around 0.35%, Nasdaq futures down a little over 0.4%. This follows cash losses across US and EU markets through Wednesday trade. A continued rise in US yields weighing on sentiment.
- US yields are a touch higher in the first part of trade today.
- USD/JPY is back to 157.50, a little over 0.10% stronger in yen terms. Wednesday lows in the pair came in under 157.00.
- AUD/USD is close to flat, last near 0.6610, while NZD is down slightly, last under 0.6110. Earlier we had NZ April building approvals fall 1.9% m/m (against a -0.2% dip in March).
- In Australia the RBA's Chief Economist Hunter stated the central bank remains mindful that inflation remains above target, but that wages growth is showing signs of coming off.
- Coming up we have Q1 capex in Australia, along with April building approvals. Shortly after the NZ budget is due.
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