NZD Up From Post GDP Lows, USD Mixed Elsewhere, AU & China MLF/Data Still To Come

The BBDXY is a touch weaker in the first part of trade, last near 1228.50, largely due to EUR/USD tracking a touch higher. The pair is last around 1.0840/45. US Tsy yields are showing a modest firmer tone in early dealings, the 2yr yield back close to 4.695%. US equity futures are a touch higher.

• Elsewhere, NZD/USD weakness was the main theme in the first part of Asia Pac trade today. The Kiwi has faltered as the economy entered a technical recession. Even though q/q growth fell as expected, y/y momentum came in below forecast. The pair last sat near 0.6200, -0.15% sub NY closing levels. This is up from post print lows of 0.6187. as the detail of the report painted a less bearish picture.
• AUD/USD is relatively steady, last just under 0.6800.
• USD/JPY dips sub 140.00 have been supported in early trade, with some support coming from higher US yields. The pair back to 140.10/15 (earlier lows were at 139.94).
• May export growth was slightly better than expected, but still showed the softest y/y pace since early 2021. Weekly investment flow data showed offshore flows into Japan equities for the 11th consecutive week.
• Coming up we have AU consumer inflation expectations for June, and then May jobs data. In China the 1 yr MLF rate is expected to be cut by 10bps (to 2.65%), which is followed by May activity figures, which are forecast to print on the soft side.