USD/JPY Prints Above 160.00, But Sees 400pip Retracement, A$ & NZD Outperform

The BBDXY sits 0.30% lower, the USD index last near 1259.3. The USD has seen broad based weakness against the majors so far today, while sharp yen swings have been the other standout.

• USD/JPY rallied above 160.00 in early trade (fresh highs back to 1990 of 160.17). From there we consolidated in the 159.00/50 region before pulling back sharply this afternoon. Lows were seen near the 156.00 level, so more than 400pips off earlier highs.
• The afternoon moves will likely raise questions around whether intervention has taken place or not. We haven't seen confirmation or hints that this has taken place. Note post BoJ lows in USD/JPY came in around 155.00. With Japan markets out, liquidity has no doubt been lighter.
• Broader USD sentiment is also softer, as the equity mood has generally been a positive one. The regional markets are firmer, with Hong Kong and China performing strongly, led by property and tech names.
• AUD is the best performer, last near 0.6580, up 0.75% for the session. NZD/USD is trailing slightly in percentage terms, last around 0.5980.
• EUR/USD is up around 0.3%, last near 1.0730.
• Looking ahead, German and Spanish CPI data kick off this week’s economic data calendar for the EU. In the US we have the April Dallas Fed manufacturing.