USD Modestly Firmer As Market Awaits Central Bank Decisions

The USD sits slightly firmer against AUD and NZD in earlier dealings, while USD/JPY is unchanged, as the market awaits the RBA and BoJ decisions later.

• The BBDXY index sits unchanged at 1237.80. US equity futures are tracking lower in the first part of trade, led by tech, with Nasdaq futures off 0.30%. US yields are mixed, slightly weaker at the front but higher at the back end, albeit with aggregate moves not beyond 1bps at this stage.
• For USD/JPY, all eyes rest on the BoJ decision later. We expect an end to NIRP, although note it is a close call. Ueda's press conference later will also be eyed. The pair was last near 149.15, off session highs. Monday highs in the pair came in just above 149.30. Earlier dips towards 149.00 were supported.
• AUD/USD is down modestly, last near 0.6550/55, off around 0.1%, NZD/USD is back under 0.6080, down by a similar amount.
• Today the RBA decision is announced at 1430 AEDT with Governor Bullock holding a press conference at 1530 AEDT. It is unanimously expected to leave rates at 4.35%.