USD Index Makes Fresh Highs Amid Yield Gains/Equity Weakness

The BBDXY has tracked higher in recent dealings, pushing above Tuesday highs. We last tracked near 1279.20. This is fresh highs in the index back to late November last year.

• Supporting the move is further US yield gains. The 10yr to 4.83%, +3bps on Tuesday closing levels in NY. This looks like a continuation of the moves seen in Tuesday trade, with news flow relative light (outside of US House Speaker McCarthy being removed).
• Regional equity sentiment is weak, which is likely helping the USD bid at the margins. US equity futures are off by 0.40%.
• NZD/USD is the weakest performer, down a little over 0.50% to 0.5875/80. The RBNZ left rates on hold, but was arguably not hawkish enough in its statement (particularly given what markets had priced for the Nov meeting prior to today's announcement).
• AUD/USD is being dragged lower, but is only off by 0.10% at this stage, to be at 0.6295/00.
• USD/JPY has ticked higher, last near 149.20. Japan officials have refused to confirm whether the authorities intervened in FX markets yesterday.