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USD Off Lows, A$ & Yen Marginally Higher

FOREX

The USD index is down, but up from lows, with the BBDXY last near 1223.25 (earlier lows at 1222.58). The main focus today has been the spike in oil prices after the US & UK military strikes on Yemen, targeting the Houthis. Oil prices are off highs, but US yields are a touch higher (more so at the front end), which may have aided the USD from lows.

  • AUD/USD got to highs of 0.6714, but we now sit back at 0.6700, around +0.20% higher for the session. To the extent higher oil prices boosts broader energy prices, the oil spike can be seen as a positive. A more cautious equity tone has likely trimmed risk appetite though. Housing finance figures were close to expectations.
  • NZD/USD has largely followed the A$ trajectory, the pair last just above 0.6240.
  • USD/JPY saw lows of 144.85, with some haven demand evident on the military strike headlines. However, the slightly firmer US yield backdrop has likely kept dips supported. The pair last near 145.00, around 0.20% stronger in yen terms for the session.
  • Looking ahead, attention turns to UK growth figures and then US December PPI data.

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