FOREX: Risk-Sensitive A$ & NZ$ Underperform As US$ Rallies

Risk-averse currencies outperformed on Friday with USDJPY down slightly to 150.04 after a low of 149.37 and USDCHF at 0.8787 following a close-to-expectations US November payroll release which drove the BBDXY USD index 0.2% higher. Also Uni of Michigan consumer sentiment and 1-year ahead inflation expectations picked up buoying the greenback. 

• USDJPY is down slightly at around 149.88 at the start of today’s trading helped by a better Q3 net export contribution and lower October trade deficit. Initial support for the pair is at 148.65, 3 December low, and resistance at 151.25, 50-day EMA. Later the November Eco Watchers survey prints.
• Risk-sensitive commodity currencies underperformed in the stronger dollar environment. AUDUSD fell below 64c to be 1% lower at 0.6390 after an intraday trough of 0.6373, below initial support. It returned to around 64c during APAC trading today but is now at 0.6395 with the trend condition bearish. AUDJPY fell to a low of 95.52, the lowest since mid-September, and finished down a percent to 95.89. It is currently around 95.83.
• NZDUSD was down 0.9% to 0.5831 but is currently slightly higher at 0.5834. This left AUDNZD down only slightly at 1.0959 after falling to 1.0942.
• In Australia the focus this week will be Tuesday’s RBA decision and Thursday’s November jobs data. In NZ, it will be Thursday’s November card spending release.
• In other markets, equities on Friday were generally stronger with the S&P +0.25% and Euro stoxx +0.5% but FTSE down 0.5%. The ASX is currently lower and KOSPI -1.6%. Oil prices were lower with WTI down 1.7% to $67.17/bbl. Copper was slightly higher and iron ore is around $104/t.