USD Pressured On Firmer Equities

The greenback is softer in Asia-Pac today as firmer US and Regional equities have boosted risk sentiment.

• AUD was pressured in the immediate aftermath of the January Australian Labour Market report. The unemployment rate ticked higher to 3.7% from 3.5%. AUD/USD fell, finding support below $0.6880.
• Local banks have played down the weakness in the Australian Labour report, as the ABS figures noted a larger than usual increase in the number of unemployed who had a job to go to in the future. This suggests that we may see a rebound in Feb.
• Losses were pared as rising equities boosted risk sentiment, with the AUD/USD rising above $0.69 handle lasting printing $0.6920/25.
• NZD/USD prints at $0.6305/10, ~0.4% firmer today. Kiwi was pressured in early trade, Kiwibank noted that they felt given the impact of Cyclone Gabrielle the RBNZ shouldn't hike rates next week. Support was seen below $0.6260, before a ~0.8% trough to peak rally sees the pair deal above its 200-Day EMA.
• USD/JPY has moderated some of yesterday's gains, and is testing its 200-day EMA. The pair is ~0.3% softer, last printing ¥133.75/85. January Trade Balance printed ~¥3.5tn deficit, which was narrower than expectations.
• The USD weakness has helped EUR and GBP tick higher. Both are ~0.2% firmer. NOK and SEK are benefiting from improved risk sentiment both up ~0.3%.
• Cross asset wise; Hang Seng is up ~2% and e-minis are ~0.2% firmer. BBDXY is down ~0.2%. 10 Year Us Treasury Yields are ~2bps lower.
• ECB speak from Panetta headlines the European session. Further out we have US PPI, Jobless Claims, Housing Starts and Philadelphia Fed Manufacturing Index. Cleveland Fed President Mester and St Louis Fed President Bullard will also cross.