USD Finds Some Support, NZD Testing Uptrend Channel Support Again

The USD regained some ground today, with the BBDXY index back near 1256. USD/JPY has been the main focus point, moving back above 132.00, but NZD has been on backfoot for much of the session, last near 0.6300.

• Firmer US cash Tsy yields have supported the USD, although there hasn't been much follow through to earlier moves. The 10yr last close to 3.71% (+2.5bps for the session). Equities are more mixed, while US/EU futures are higher this hasn't done much to support risk appetite.
• USD/JPY tried to break sub 131.50 close to the Tokyo fix but ran out of momentum and climbed back above 132.00, touching a high of 132.37, before settling back at 132.20.
• NZD/USD is off 0.75% for the session, last near 0.6300. This is below uptrend channel support and the 20-day EMA (0.6311). NZ survey data has been quite poor this week, with ANZ's consumer sentiment index falling sharply in December. The trade position also remain comfortably in deficit.
• AUD/USD is off 0.25% to 0.6660, outperforming the NZD. Support is evident sub 0.6660 at this stage, while the AUD/NZD cross climbed back to 1.0575. Higher iron ore prices, back above $110/tonne, has helped A$ sentiment at the margin.
• Coming up is German consumer confidence, Canadian CPI and in the US, consumer confidence and existing home sales.