USD/JPY To Fresh YTD Highs Despite Verbal Jawboning, A$ Up On Jobs Beat

The USD has traded with a firmer bias in Asia Pac today, the BBDXY back close to 1232.00 at the time of writing, +0.25% versus NY closing levels. This is well above pre FOMC levels from Tuesday's sessions with US yield moves supporting gains, as the market digested the hawkish FOMC on hold outcome (better AU jobs data also helped these moves). Cash US Tsy yields gains have accelerated this afternoon, the 2yr back to 4.74% (+5bps). Only AUD is tracking higher against the USD at this stage.

• USD/JPY broke through 141.00 earlier, which prompted fresh verbal rhetoric from the Japan authorities. This saw the pair consolidate, but we have since move to fresh highs of 141.33.
• US yield moves we aided by higher AU yields which came post the AU May jobs beat. This helped bring AUD/USD up from lows sub 0.6770, to be last around 0.6800/05, fresh highs for the session. RBA terminal pricing has risen.
• NZD/USD has faltered, weighed by a slightly weaker than expected Q1 GDP report, which confirmed the economy was in a technical recession. The detail wasn't too bad though. NZD/USD saw support ahead of 0.6160, last tracking near 0.6180, still -0.50% for the session.
• EUR/USD sits around 1.0810/15 currently, not far from session lows.
• This comes ahead of the ECB meeting later, which is expected to delivery a 25bps hike. Later US May retail sales, trade prices, IP/capacity, business inventories, Empire & Philly indices and jobless claims print.