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USD Index Higher, Supported By Yields, NZD Hits Fresh YTD Low

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The USD index sits a touch higher for the session, the BBDXY last near 1244. The USD spiked higher at the open, amid a slump in US Tsy futures, as the Fed's Waller pushed back on early rate cuts.

  • US yields are slightly off session highs but still around 1-4bps firmer across the benchmarks, led by the front end (2yr back to 4.605%).
  • NZD/USD has been the weakest performer making fresh YTD lows near 0.5980. Outside of the US yield move we have seen quite soft consumer and business sentiment readings, pointing to a weaker economic backdrop.
  • AUD/USD is also lower, but only marginally. The pair last near 0.6530/35. A rebound in HK/China equity sentiment (post yesterday's President Xi meeting with US executives) has helped.
  • USD/JPY has tracked recent ranges, last near 151.35/40. The BoJ Summary Of Opinions largely in line with recent BoJ rhetoric. We did see the cabinet secretary also warn around excessive yen moves, but this was in line with recent comments by the FinMin.
  • Looking ahead, German retail sales figures are out. Later in the day, final readings for Q4 US GDP, initial jobless claims, MNI Chicago PMI and pending home sales are all scheduled, alongside Canada January GDP.
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The USD index sits a touch higher for the session, the BBDXY last near 1244. The USD spiked higher at the open, amid a slump in US Tsy futures, as the Fed's Waller pushed back on early rate cuts.

  • US yields are slightly off session highs but still around 1-4bps firmer across the benchmarks, led by the front end (2yr back to 4.605%).
  • NZD/USD has been the weakest performer making fresh YTD lows near 0.5980. Outside of the US yield move we have seen quite soft consumer and business sentiment readings, pointing to a weaker economic backdrop.
  • AUD/USD is also lower, but only marginally. The pair last near 0.6530/35. A rebound in HK/China equity sentiment (post yesterday's President Xi meeting with US executives) has helped.
  • USD/JPY has tracked recent ranges, last near 151.35/40. The BoJ Summary Of Opinions largely in line with recent BoJ rhetoric. We did see the cabinet secretary also warn around excessive yen moves, but this was in line with recent comments by the FinMin.
  • Looking ahead, German retail sales figures are out. Later in the day, final readings for Q4 US GDP, initial jobless claims, MNI Chicago PMI and pending home sales are all scheduled, alongside Canada January GDP.