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USD Recovery Continues, BoJ Speak, Aust CPI Up Soon

FOREX

Early G10 FX trends are skewed towards a firmer USD, albeit modestly at this stage. The BBDXY USD index sits just above 1250 in recent dealings.

  • USD/JPY has pushed above late Tuesday highs from NY trade, the pair last close to 157.30/35. May 1 highs at 157.99 are likely to be an upside focus point.
  • US yields are down a touch in early dealings but maintain the bulk of Tuesday's gains. Yen sensitivity to US yield moves remains evident. Differentials are skewed back in favor of the dollar.
  • For USD/JPY we have BoJ board member Adachi's speech in Kumamoto coming up a little later. This afternoon consumer sentiment prints.
  • AUD/USD is under 0.6650, slightly off NY closing levels, while NZD is around 0.6140.
  • We have May ANZ business confidence/activity figures in just under an hour. Greater focus will rest on the Aust monthly CPI print for April though. The market expects a 3.4% y/y outcome (prior was 3.5%). Also out is Q1 construction work done (market forecast is 0.5%q/q, prior was 0.7%).

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