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NZD Edges Higher, Muted Start Elsewhere In G10 FX

FOREX

The early tone in G10 FX markets is a slightly weaker USD one, but overall moves are muted at this stage. The BBDXY sits closed to unchanged versus NY closing levels from Wednesday, 1222.50/55 last at the time of writing. Cross asset signals are relatively quiet in early trading, with US cash Tsys opening a tough firmer in yield terms, while US equity futures are edging up.

  • NZD/USD is just a touch below Wednesday session highs, last near 0.6210. Earlier May trade figures showed a small surplus as exports to China continued to recover. Kiwi bulls may target a test of the 200-day EMA (0.6233).
  • AUD/USD is also tracking slightly firmer, last around 0.6800.
  • USD/JPY has been within recent ranges, last 141.80/85, up from lows for the session under 141.70, with a slightly firmer US yield backdrop likely helping at the margins. EUR/USD is close to 1.0990. GBP/USD steady around 1.2770, ahead of the BoE decision later.
  • With China and Hong Kong markets closed today, and little in the way of data/event risks, market participants are likely to remain on headline watch for the Asia Pac session.

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