USD Grinds Higher, As US Yields Open Firmer

Recent dealings have seen the USD turn a little more supported, reversing earlier softness. Overall ranges are fairly tight though. The BBDXY was last around 1244.50, marginally above NY closing levels from Thursday.

• US yields have opened a touch higher, which is likely adding some marginal USD support. The 2yr is up around 2bps to 4.59%.
• The Fed's Bostic is commenting at the moment. They look broadly in line with recent rhetoric that the job on bringing back inflation back to 2% is not done yet. Bostic notes if inflation retreats faster it will change the rate outlook.
• USD/JPY has firmed back to 150.10, against earlier lows at 149.83. Comments from FinMin Suzuki crossed earlier that the authorities are watching forex moves closely but won't comment on FX levels, nor intervention. This is in line with recent rhetoric around.
• Note that BoJ Governor Ueda will appear before parliament at 11:35am local time.
• AUD/USD is back under 0.6520, around 0.10% weaker, while NZD/USD is drifting back to 0.6100.
• Earlier we had RBNZ Governor Orr speak, whilst the rate outlook wasn't touched on, Orr noted that work still ne3eds to be done to keep inflation expectations anchored.
• Event risk is light for the rest of the Asia Pac session, although Ueda's parliament appearance will be watched.