USD Edges Lower In Early Trade, A$ Marginally Higher

The BBDXY is extending lower in the first part of Friday Asia Pac trade. We were last near 1231.20, not too far off Jan 24 lows. Overall moves aren't large though, albeit with the USD modestly down against all the majors.

• Risk appetite has been supported by higher US equity futures, following late earnings news from Amazon and a share buy back by Meta.
• This is helping marginal AUD outperformance. We were last around 0.6585, up +0.20%. AUD lagged the broader USD sell off on Thursday's session so we may be seeing some modest catch up. The pair remains within recent ranges though, unable to break to sustain gains above 0.6600 in recent weeks.
• AU Data just printed, and showed the Q4 PPI at 4.1% y/y, a slight uptick on the 3.8% Q3 pace. Housing loan values fell -4.1% m/m though for Dec, below the expected +1.0% rise. There data hasn't shifted AUD sentiment though.
• USD/JPY is marginally lower, last in the 146.30/35 region. Recall Thursday lows were at 145.90. US yields are close to unchanged in early trade. Note Fed Chair Powell will be interviewed by 60 Minutes in The US on Sunday evening.
• NZD/USD is a touch higher, but has been unable to meaningfully test above 0.6150, where the 20 and 50 day EMAs sit.
• Event risk is light for the rest of the session, with the upcoming US NFP in focus.