USD Firmer, Softer Equity Futures Weigh On Risk Sentiment

The greenback is firmer in early Asia-Pac trade, softer US Equity futures are weighing on risk sentiment.

• AUD is pressured, AUD/USD is down ~0.3%. RBA Gov Lowe appeared before a parliamentary committee, however there were no fresh hawkish surprises weighing on AUD at the margins. Downside support is at $0.6840, yesterday's low, then $0.6781 38.2 retracement of Oct-Feb uptrend.
• NZD/USD is down ~0.2%, last printing at $0.6235/40. Finance Minister Robertson has been speaking, noting that there may be initial inflationary pressure from cyclone Gabrielle however the rebuilding may boost H2 GDP. He also said that there is evidence inflation has peaked.
• USD/JPY firms in early trade, up ~0.2%. Upside resistance at the 6 Jan high ¥134.77 is the next target for bulls. USD/JPY last prints ¥134.20/30.
• GBP and EUR are also pressured, both down ~0.2%.
• Cross asset flows are showing a risk off tone. S&P500 futures are down ~0.3%, NASDAQ futures are down ~0.4% and BBDXY is ~0.2% firmer having broken its 50-day EMA this morning.
• There is a thin data calendar for the remainder of the Asia-Pac session. Further out CPI data from France and US terms of trade will cross, as will Fedspeak from Richmond Fed President Barkin and Fed Gov Bowman.