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Firmer US Equity Futures Aid NZD & AUD Outperformance, BoJ Later

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G10 FX trends are relatively steady in the first part of Friday trade, as markets await the BoJ decision later. The BBDXY is close to unchanged, last just above the 1260.0 level. Higher beta plays are being aided by the firmer equity backdrop.

  • NZD/USD is outperforming at the margins, up around 0.25%, the pair last near 0.5960/65. This puts us right on the 20-day EMA. NZD was a modest laggard through Thursday trade, but is potentially playing some catch up today.
  • The weaker NZ ANZ consumer sentiment print, down 5.0% to 82.1 for April hasn't impacted NZD. The index has fallen sharply in recent months, but remains above late 2022 lows.
  • in Japan, Tokyo CPI was much weaker than expected, largely due to educational subsidies. Still, there was signs of softer y/y momentum across most of the other sub-categories.
  • USD/JPY has been steady though, the pair last near 155.60/65, little changed for the session so far.
  • US equity futures surged at the open, led by Nasdaq futures, +1%, with Alphabet and Microsoft earnings updates fuelling positive momentum.
  • This is likely helping NZD, while AUD/USD is also higher, albeit trailing NZD at the margins. The pair last near 0.6525, around 0.1% firmer.
  • We do get some AU data in a little over an hour (PPI and trade prices) but most focus will rest on the BoJ decision.
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G10 FX trends are relatively steady in the first part of Friday trade, as markets await the BoJ decision later. The BBDXY is close to unchanged, last just above the 1260.0 level. Higher beta plays are being aided by the firmer equity backdrop.

  • NZD/USD is outperforming at the margins, up around 0.25%, the pair last near 0.5960/65. This puts us right on the 20-day EMA. NZD was a modest laggard through Thursday trade, but is potentially playing some catch up today.
  • The weaker NZ ANZ consumer sentiment print, down 5.0% to 82.1 for April hasn't impacted NZD. The index has fallen sharply in recent months, but remains above late 2022 lows.
  • in Japan, Tokyo CPI was much weaker than expected, largely due to educational subsidies. Still, there was signs of softer y/y momentum across most of the other sub-categories.
  • USD/JPY has been steady though, the pair last near 155.60/65, little changed for the session so far.
  • US equity futures surged at the open, led by Nasdaq futures, +1%, with Alphabet and Microsoft earnings updates fuelling positive momentum.
  • This is likely helping NZD, while AUD/USD is also higher, albeit trailing NZD at the margins. The pair last near 0.6525, around 0.1% firmer.
  • We do get some AU data in a little over an hour (PPI and trade prices) but most focus will rest on the BoJ decision.