NZD Bounces On Local Bank RBNZ View Change, Steady Trends Elsewhere

Outside of a NZD bounce, G10 FX trends are very muted in the first part of Friday trade. THE BBDXY has been largely steady, last tracking near 1242.80, down slightly from NY closing levels.

• NZD/USD has bounced on ANZ's revised RBNZ OCR outlook. The local bank now expects 2 hikes (Feb and Apr) and the OCR to hold at 6% until Feb next year. From around 0.6095 we bounced to 0.6113 and have generally been grinding higher since. We now sit in the 0.6120/25 region, +0.45% higher for the session.
• The AUD/NZD cross is lower, getting close to a test of 1.0600 (low of 1.0602). AUD/USD has been largely range bound, last near 0.6495. RBA Governor has testified before local parliament this morning, but has struck a familiar tone to Tuesday's RBA statement and press conference. Risks around policy are finely balanced.
• USD/JPY sits near 149.30, little changed for the session. Earlier comments from FinMin Suzuki reiterated familiar rhetoric around FX being market driven and that the authorities are watching moves closely.
• This is the first such comments from the FinMin since Jan 19, but the market impact on USD/JPY has been negligible.
• The other focus for JPY will be comments from BoJ Govenor Ueda, who is currently before parliament.
• There are no major data releases scheduled for today, leaving the market on headline watch and eyeing broader risk flows. Note that onshore China equity markets are closed for the kick off of the LNY holiday period. Onshore FX markets are still open, but are shut for all of next week.