USD Nudges Higher, Consolidating Overnight Gains

The USD is seeing further modest support in the first part of trading. The BBDXY is back close to 1324 and we remain above the simple 50-day MA, 1320.88, which we rebounded back above overnight. NZD, AUD and JPY are slightly down on NY closing levels, while EUR is holding up better.

• Cross asset signals are lending support to the USD, with US equity futures lower, led by the tech sector, Nasdaq ~0.90% lower. This follows disappointing earnings results around the US close, particularly from Amazon.
• USD/JPY is still higher though, last around 146.350/40. Earlier Tokyo CPI measures came in +0.2ppts firmer than expectations across the board (headline to 3.5% y/y, core to 3.4% y/y). The BoJ meeting later today is clearly the focus though.
• AUD and NZD are underperforming slightly, with USD/CNH back above 7.2600 not helping. AUD/USD back just under 0.6450. Just released PPI data showed a further increase in upstream price pressures, the y/y pace is +6.4% y/y, which is the strongest since the series began.
• NZD/USD is back to 0.5820. ANZ NZ consumer confidence was unchanging at 85.4, but inflation expectations eased to 5.0% from 5.1%.
• EUR/USD is just shy of 0.9970.