NZD/JPY Dips More Than 0.50%, As Kiwi Outperformance Unwinds Somewhat

The underlying G10 FX tone has remained risk averse, dominated by NZD weakness and modest JPY outperformance.

• The BDDXY is a touch higher from earlier levels, last near 1242.80. Yen is the only G10 currency firmer against the USD, last just under 150.40. US equity futures are down, but away from session lows, last off -0.15-0.20%.
• US yields are down modestly but this is not weighing on dollar sentiment outside of the yen.
• NZD/USD touched a low 0.6163, but sits slightly higher now, last near 0.6170. Outside of modest risk aversion in the equity space there don't appear any direct fresh macro catalysts for the move.
• NZD was the top performer last week in the G10 space, while position adjustments may also be made ahead of the RBNZ on Wed. Offshore demand post last week's debt sale may also be behind us now.
• NZD/JPY is back to 92.75/80, off around 0.55%. Recent highs in the pair sit at 93.45.
• AUD/USD is slightly lower, last near 0.6560, but the AUD/NZD cross is up to 1.0630, just off session highs.