Risk On Equity Tone Aiding A$ Gains, Yen and CHF Softer

G10 FX trends have turned more risk on in recent dealings. The Aust jobs beat kicked things off, while further broad based equity gains are aiding sentiment as well, with JPY and CHF underperforming.

• The China data helped stabilize onshore equity sentiment, another positive for the likes of AUD. The data was reasonably close to expectations, albeit with retail sales not showing further easing, a likely welcome development.
• This is unlikely to shift the narrative around China growth, but given the run of disappointing data outcomes, is helping equities off depressed levels (CSI 300 last up over 1%).
• AUD/USD was last around session highs, close to 0.6620, up 0.3%. Earlier we were near 0.6570 ahead of the jobs data. AUD/JPY is back back to recent highs last near 97.65. The pair hasn't been above 98.00 since the start of the month. Iron ore is holding lwoer, but away from worst levels.
• NZD/USD has ticked higher, last near 0.6000, but is still underperforming AUD. The AUD/NZD cross is back to 1.1030, just off month to date highs.
• USD/JPY is ticking higher, amidst the positive equity tone, last near 147.50, still shy of recent highs. The Q2 GDP beat earlier hasn't provided any lasting positive yen impetus. USD/CHF was last 0.8660.
• US equity futures are up, led by the Nasdaq, which is testing Wednesday highs.