USD Uptrend Continues, NZD Underperforms Post RBNZ

USD indices have continued to track higher. The BBDXY getting close to 1280, fresh highs back to late November last year. Dollar sentiment has been aided by the continued rise in US yields, with the 10yr making fresh cyclical highs of 4.85%.

• NZD/USD has underperformed post the slightly less hawkish RBNZ (which left rates on hold as expected). The RBNZ language hinted potentially less need to tighten in November. The kiwi fell to 0.5871 but has since stabilized somewhat, last 0.5885/90, still 0.35% weaker for the session.
• AUD/USD was dragged lower by NZD but found support under 0.6290 (similar to lows from Tuesday). We now sit back near 0.6300, slightly outperforming broader USD trends. AUD/NZD has pushed back above 1.0700.
• USD/JPY has drifted a little higher. The pair was last near 149.25, after opening closer to 149.00. Highs for the session sit at 149.32. A raft of Japanese officials have refused to confirm if the authorities intervened in FX markets yesterday, while maintaining recent rhetoric around FX. Yen is outperforming the rise in US yields, but markets remain wary of intervention risks.
• Looking ahead, we have some ECB speak, headlined by Lagarde. Final September PMIs are due in the EU. Later the Fed’s Bowman and Goolsbee speak. There is also a swathe of US data including ADP September employment, September services PMI/ISM and final August durable goods orders.