USD Index Back To Session Highs, AUD/JPY Dips

The BBDXY sits a touch above NY closing levels from Wednesday, last at 1222.80, with dips today under 1222 supported. Commodity was firmer in early trade, but has given up gains, particularly on crosses like AUD/JPY. Cross asset signals have been muted, with US yields little changed, while US equity futures are down a touch. Regional equities are mixed in holiday impacted markets, with China and Hong Kong both out today.

• AUD/USD couldn't sustain earlier gains above 0.6800. The pair last tracks 0.6770/75, around 0.35% weaker versus NY closing levels from Wednesday. Local equities are underperformers (the ASX 200 off 1.6%), although we have seen iron ore firm by around 1%. AUD/JPY is down around 0.50%, last back under 96.00, after earlier highs above 96.50.
• NZD/USD couldn't get above 0.6220 and now sits back at 0.6200, slightly down for the session. Earlier May trade figures showed a small surplus as exports to China continued to recover.
• USD/JPY is tracking slightly lower, last around session lows at 141.65/70. Slight risk off in the commodity FX space likely helping at the margins. BoJ board member Noguchi struck a familiar tone in a speech today, saying the bank is showing a strong commitment to easing and that 2% inflation expectations are not anchored yet.
• EUR/USD is steady around 1.0990, while GBP/USD is down a touch to 1.2760.
• Later, the BoE, Norgesbank and SNB decisions are announced. All three are expected to hike rates by 25bp. Also Fed Chair Powell appears before the Senate Banking Committee and the Fed’s Waller, Bowman, Mester and Barkin speak. There is US Chicago & Kansas indices, jobless claims and existing home sales.