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USD Index Pares Weekly Loss, Yen Weaker As BoJ Maintains Bond Purchase Pace

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The BBDXY USD index sits just off session highs, last near 1247.5. This is near 0.20% firmer versus end NY levels from Thursday. Still, we are comfortably tracking lower for the week, off around 0.50% at this stage. The weaker US yield backdrop has weighed, with the 10yr yield off around 13bps through this period. Focus has been on Fed easing risks in light of data outcomes, albeit with some push back from Fed officials around the progress on inflation in recent sessions.

  • Today, USD/JPY is up around 0.30%, last near 155.80. This is slightly off session highs (155.93). Yen was weighed by an unchanged BoJ bond buying stance, as there was no follow up after Monday's reduced purchases for 5-10yr bonds. The pair remains above all key EMAs (the 20-day sits near 155.00).
  • AUD/USD is softer, back towards 0.6660, down around 0.25%. On balance, weaker China data hasn't aided sentiment. China IP growth and retail sales showing diverging trends. Property indicators and house price data were also weak. NZD/USD is off by around 0.15%, last near 0.6110/15.
  • Regional equity sentiment has been mixed today, with softer mainland China equities a likely headwind for AUD and NZD. Cross asset sentiment elsewhere has seen slightly lower front end US yields, while equity futures are near flat.
  • Looking ahead, the focus turns to the final reading of Eurozone CPI and any further commentary from Fed officials.
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The BBDXY USD index sits just off session highs, last near 1247.5. This is near 0.20% firmer versus end NY levels from Thursday. Still, we are comfortably tracking lower for the week, off around 0.50% at this stage. The weaker US yield backdrop has weighed, with the 10yr yield off around 13bps through this period. Focus has been on Fed easing risks in light of data outcomes, albeit with some push back from Fed officials around the progress on inflation in recent sessions.

  • Today, USD/JPY is up around 0.30%, last near 155.80. This is slightly off session highs (155.93). Yen was weighed by an unchanged BoJ bond buying stance, as there was no follow up after Monday's reduced purchases for 5-10yr bonds. The pair remains above all key EMAs (the 20-day sits near 155.00).
  • AUD/USD is softer, back towards 0.6660, down around 0.25%. On balance, weaker China data hasn't aided sentiment. China IP growth and retail sales showing diverging trends. Property indicators and house price data were also weak. NZD/USD is off by around 0.15%, last near 0.6110/15.
  • Regional equity sentiment has been mixed today, with softer mainland China equities a likely headwind for AUD and NZD. Cross asset sentiment elsewhere has seen slightly lower front end US yields, while equity futures are near flat.
  • Looking ahead, the focus turns to the final reading of Eurozone CPI and any further commentary from Fed officials.