NZD/JPY Hits Fresh Multi-Year Highs As Risk Mood Buoyed By Nvidia Earnings

The BBDXY sits down modestly, versus end Wednesday levels, last near 1241.4. US equity futures have surged, driven by the Nasdaq (+1.45%) post Nvidia's positive earnings beat and guidance. This drove a risk-on theme to markets early, although we didn't see much follow through.

• NZD/USD continues to see a positive beta with respect to equity risk moves. The pair got close to 0.6200 but couldn't breach the level (we were last in the 0.6190/95 region). Initial technical resistance holds at 0.6206 the Jan 16 high, while support sits at 0.6163 (lows from Feb 21)
• AUD/USD has lagged, the pair last near 0.6555. AUD/NZD broke below 1.060 earlier making fresh yearly lows of 1.0586, before quickly reversing however the pair was unable to break back above 1.060 and currently hovers above the new yearly lows at 1.0588, technical support holds at 1.0560 the lows from May 2023.
• Both NZD and AUD saw sensitivity to HK/China equity moves, coming off highs as these markets soften. They are firmer at the Asia lunch time break though, which has helped push both currencies back into positive territory.
• USD/JPY was higher in early trade, as risk on flows boosted yen crosses. However, we sit back unchanged now at 150.30/35. A slight US yield pull back today, likely helping yen. NZD/JPY got to fresh highs of 93.215 earlier, but we sit back at 93.10 in latest dealings.
• Looking ahead, the Fed’s Jefferson, Harker, Cook and Kashkari speak later. Also, the ECB’s Tuominen and Fernandez-Bollo appear and the January meeting accounts are published. In terms of data, US/Europe preliminary February PMIs are released, as well as US jobless claims, Chicago Fed index, US existing home sales, final January euro area CPI and Canadian retail sales.