USD Holds Steady Ahead Of NFP Print

The major USD indices are close to steady so far for the session. We did see a brief move higher earlier, as UST yields rose, but this had little follow through. The BBDXY sits at 1257.40 currently.

• As has been the case for much of the week, JPY and NZD have remained on the front foot. NZD/USD is up a further 0.33% for the session so far, this puts us back above 0.6380, although we are still below overnight highs of 0.6400. A downside terms of trade surprise did little to impact sentiment.
• USD/JPY hasn't been able to break below 135.00, but the earlier move above 135.50 was sold into. This comes despite UST yields holding higher levels for much of the session. Bloomberg reports that Japan lifers may be raising offshore asset hedge ratios, which would naturally benefit the yen.
• AUD/USD is back to 0.6815, but is still tracking recent ranges. Housing finance data was close to expectations, while RBA Governor Lowe reiterated recent comments in a panel session in Thailand.
• Coming up, we have some ECB speak, along with the EU PPI. Canada labour force data prints, while the main focus will be on the US non-farm payrolls outcome. Fed's Barkin is also due to speak.