USD Back Lower, A$ Outperforming, HK/China Equity Trends Marginally Positive

The dollar has seen somewhat of a see-saw pattern through the first part of Friday trade. Ranges remain largely contained though. The BBDXY was last near 1241.60, up slightly from session lows.

• We saw little follow through to earlier highs of 1242.60, which came after the Fed's Waller spoke. The Fed Governor indicated no rush to cut rates and time was needed to assess inflation trends.
• US Tsy futures have dipped, but Thursday lows for the 10yr remain intact. A reminder there is no cash Tsy trading with Japan markets out.
• AUD/USD is the strongest performer, up to 0.6574, before easing modestly (+0.20% firmer). Thursday highs at 0.6595 remain intact. The tone to China/HK equities looks modestly positive, albeit volatile.
• Some sell-side names have also highlighted dividend related inflows as a potential AUD positive in the near term.
• The AUD/NZD cross is tracking higher, last edging back above 1.0600. The weaker NZ Q4 retail sales volume data from earlier may be a slight NZD drag. For NZD/USD we are near 0.6195 currently, unchanged for the session.
• USD/JPY has been relatively steady last near 150.45.