USD Waits For NFP, Antipodeans Lose Ground

The DXY operated in close proximity to its three-month highs in a typically quiet pre-NFP Asia-Pac session. Upbeat ADP employment data and weekly initial jobless claims released over the last two days raised expectations surrounding the upcoming NFP report. The greenback is poised to finish the week as the best G10 performer, before the U.S. closes for the observance of its Independence Day on Monday.

• USD/JPY round tripped from a fresh multi-month high (Y111.66) over the Tokyo fix, while holding a tight 15 pip range. Participants eyed the expiry of $2.0bn of options with strikes at Y111.00 at today's NY cut, with a further $2.0bn of USD calls with strikes at Y111.40-50 due to roll off.
• The Antipodeans lost ground amid continued sense of concern about Australia's Covid-19 situation and the economic fallout from virus containment measures. Their commodity-tied peers NOK and CAD were resilient.
• USD/CNH climbed to a fresh weekly high. The PBOC set its central USD/CNY mid-point at CNY6.4712, 8 pips above sell-side estimate.
• The NFP provides the main point of note today, with U.S. trade balance, factory orders & final durable goods orders also coming up. Speeches are due from ECB's Lagarde & de Cos.