USD Mostly Steady As Market Awaits US NFP

USD trends have mostly been range bound in the first part of Friday trade. Markets no doubt mindful of the US NFP print later. The USD BBDXY index was last near 1252.3, close to end Thursday levels from NY Trade.

• USD/JPY is little changed, last around 155.60. Unchanged BoJ buying ops and comments from FinMin Suzuki that FX intervention should only be used on a limited basis weighed on yen at the margins. This propelled us towards 156.00, but selling interest emerged.
• We had April household spending data show a rise in y/y terms for the first time since Feb last year. The outcome was in line with forecasts though.
• Japan implied vols and risks reversals for the 1 week tenor are starting to shift as next week's BoJ meeting comes into view.
• AUD/USD is higher, last near 0.6680. We have RBA Deputy Governor comments soon, but the central bank seems intent to wait for further inflation data. China import figures were weaker than forecast, but commodity import volumes held up.
• NZD/USD also sits marginally higher, last back above 0.6200.
• Looking ahead the main focus is the upcoming NFP print. This release is expected to partially rebound in May from April’s surprisingly low 175k, with 188k in headline gains per MNI’s sell-side analyst median. While still an acceleration from the prior month, the consensus outcome if realized would be seen as reinforcing the view that the labor market has shifted into a softer but still-solid phase of growth.