USD Index A Touch Higher, AUD & NZD Weighed By Weaker Equity Trends

The USD index sits marginally higher in recent dealings, last near 1242. Overall though it has been a muted session for G10 FX.

• Cross asset moves have been supportive in the equity space, with US futures sitting lower at this stage, with Nasdaq underperforming (-0.30%). US yields are down, but only a touch.
• We have had a number of data releases across Japan, Australia and NZ, but sentiment hasn't been shifted. To be fair these have mostly been second tier data outcomes with Tokyo CPI arguably the most significant print, but that was close to expectations.
• The China NPC headlines around aggregate growth were on expectations ("around 5% for 2024"). Again sentiment hasn't moved much. China equities sit higher on potentially state support (Rtrs), but HK markets are down quite sharply.
• AUD and NZD sit marginally lower, in line with the weaker regional equity tone for the most part. AUD/USD last near 0.6500, while NZD/USD tracks just under 0.6090. Overall ranges have been fairly tight though.
• USD/JPY is near 150.50, little changed for the session. Earlier dips to 150.36 were supported.
• Looking ahead, the Fed’s Barr speaks and February services ISM/PMI and final January durable goods orders print. European PMIs are also released.