Quiet Ahead Of NFP

Post the earlier CNH fireworks, FX markets have been very quiet, particularly in the majors. USD/Asia FX pairs are seeing a little more traction to the downside, in line with the USD/CNH move.

• AUD/USD remains below NY closing levels but only just at 0.7260. The market largely ignored the weaker than expected housing data (-6.4% on home loans, versus -0.5% expected). Iron ore is holding close to $142/tonne, while copper has edged slightly lower after the overnight surge.
• NZD/USD saw better building data for Q1, but has not been moved by domestic factors. NZD/USD sits around 0.6555 at present.
• Cross asset signals have been mixed, with US yields ticking a touch higher in the cash market, while equities are positive for those markets that are open within the region.
• EUR/USD (1.0755 last) and USD/JPY (129.85 last) have been very quiet.
• USD/CNH has stayed heavy post the early break of 6.6500, but hasn't made fresh lows below 6.6170 yet (which was the low post the initial break).
• USD/INR is opening softer, sub 77.50, while USD/IDR is down a further 0.40% in spot terms to 14428 last.
• Even with London on holiday the monthly NFP print provides plenty of event risk ahead of the weekend. Friday will also bring the release of the latest ISM services survey and further Fed speak from Brainard (although her address will focus on the Community Reinvestment Act, which likely limits the scope for meaningful policy discussion). Note that the Fed goes into its pre-meeting blackout ahead of the weekend.