Kiwi dollar is the underperformer in quiet....>

FOREX: Kiwi dollar is the underperformer in quiet pre-NFP trade, NZD/USD last

down 22 pips at 0.7374. Weak New Zealand Building Permits are being blamed, the

figure dropped to -9.6% from a revised 9.6% in November.

- Aussie dollar also weaker today, AUD/USD down 25 pips at 0.8014. A risk off

tone has taken hold in Asia, while the ASX200 is still in positive territory it

has slipped from highs as US equity futures drop with bonds bid globally, led by

JGB's after the BoJ increased purchases at their operations. The 0.80 handle in

AUD/USD has managed to hold, the pair bounced off session lows at 0.8004. A

compressing AU/US yield spread is also putting pressure on Aussie, the spread is

last at 4.5bp from 22bp at the start of the week. Before the SFE open the spread

touched 1.1bp as UST continued their sell off.

- With NFP tomorrow and the RBA next week there are downside risks to the

Aussie. ANZ write "when looking at the list of traditional drivers of the AUD

they are either signalling that it should be a lot lower (in the case of rates)

or that its trajectory is at risk of turning (extended price action in

commodities, global beta and in the DXY)."