G10 FX Space Sees Little Action With Key U.S. Risk Events Ahead Stealing Limelight

The BBDXY oscillated between gains and losses as most major FX crosses treaded water, with the greenback last sitting atop the G10 pile, virtually on a par with the yen in terms of today's performance. Key U.S. risk events drew nearer, with all eyes on the midterm elections and monthly CPI data.

• The Aussie dollar showed a muted reaction to weak domestic outturns for consumer and business confidence. Westpac Consumer Confidence fell to 78.0 (prev. 83.7), while NAB Business Confidence slipped to 22 (prev. 25) amid higher interest rates and elevated inflation.
• New Zealand's inflation expectations rose across the board in the RBNZ's Q4 Survey of Expectations, cementing the case for continued aggressive monetary tightening. The data saw participants add hawkish central bank bets, with ~71bp worth of OCR hikes priced for this month's monetary policy review. The reaction in NZD/USD was limited to a brief knee-jerk higher.
• AUD/NZD trades slightly below neutral levels, having clawed back the bulk of losses registered on the back of New Zealand's inflation expectations data. AU/NZ 2-Year swap spread was heavy, weighing on spot AUD/NZD.
• Spot USD/CNH is poised for a bullish inside day, as a 6-month high in China's COVID-19 case count applying some pressure to the yuan. The PBOC fix returned to a stronger bias after a pause yesterday.
• EZ retail sales and comments from ECB's Nagel & Wunsch, BoE's Pill & Riksbank's Breman will take focus after Asia-Pac hours.