USD Close To Unchanged, NZD Aided By Jobs Data

The USD is relatively steady in Wednesday trade to date. The BBDXY last near 1240.80, down a touch from end Tuesdya levels in NY. Cross asset moves have been muted, with US yields a touch lower, while US equity futures have shown some volatility but since unchanged this afternoon.

• Early focus was on NZ Q4 employment data, which came out stronger than expected across all the indicators. NZD/USD rose to 0.6107 but had little follow through, we eventually got to 0.6112 but sit back closer to 0.6100 in recent dealings.
• Positive HK/China equity sentiment aided NZD and AUD gains, but markets are away from best levels this afternoon.
• AUD/USD sits near 0.6530 this afternoon against earlier highs of 0.6540. AUD/NZD has seen dips towards 1.0690 supported, the pair last near 1.0705. Sentiment is skewed lower in the pair given relative yield differentials and relative commodity prices, as we noted earlier (see this link).
• USD/JPY sits near 147.90 little changed for the session and having tracked a tight range overall (less than 30pips).
• Looking ahead, before industrial production and Swiss currency reserves are out. US and Canadian trade balance data also crosses, as well as further Fed Speak, with expected comments from Fed’s Kugler, Collins, Barkin and Bowman all due.