USD Holds Near NY Session Highs, A$ Weakness Persists Post Jobs Data

The USD has mostly traded on the front foot, with the BBDXY currently sitting above 1228, although this is close to NY closing levels. JPY has been the clear exception, outperforming against the rest of the G10 basket, particularly AUD. Slightly weaker US equity futures (-0.15%) are helping USD sentiment at the margin, while US cash Tsy yields are down -0.4/-1.7bps across the curve, a continuation of trends from the NY session.

• AUD/USD faltered post the weaker jobs data. We ultimately got to a low of 0.6905, but have recovered somewhat, last around 0.6910/15. Weaker jobs growth and the tick higher in the unemployment rate, went against market expectations, although the detail showed hours worked crimped by illness, likely due to the Covid wave, while full time jobs remained firm.
• AU-US yield spreads are lower, the 10yr spread back close to flat, but we are up from session lows.
• AUD/JPY got to the low 88.60 region, but is now back to 88.75, while the AUD/NZD cross is 1.0755, slightly up from session lows.
• USD/JPY has consolidated after earlier losses, last tracking near 128.50/55 (earlier lows were at 128.29). We still sit -0.25% for the session.
• USD/NOK is higher, last near 9.9460, +0.45% for the session.
• The data calendar is light for the remainder of the Asia Pac session.