Yen Firmer In Asia, NZD Pressured

USD/JPY sits a touch off session lows. The pair is ~0.5% lower and the yen is the strongest performer in the G-10 space at the margins. US Treasury yields have ticked lower, boosting demand for the JPY.

• USD/JPY prints at ¥130.15/25, the next downside target is ¥129.75 76.4% retracement of the Jan 16 to Mar 8 rally. On the wires this morning Japan's February National CPI crossed. Headline (3.3%) and Core (3.1%) figures were in line with expectations. Core-core measure was a touch above expectations at 3.5%.
• Kiwi is the weakest performer in the G-10 space today thus far. NZD/USD prints at $0.6235/40 ~0.2% softer. ANZ downgraded their milk price forecast to $8.25/kg. The NZ Ministry said the economy may have shrunk in Q1 due to Cyclone Gabrielle.
• AUD/USD is little changed from yesterday's closing levels, the pair was pressured in early dealing as e-minis came off best levels and sparking a risk off move seeing the USD and Yen firm alongside US Treasuries. Support was seen at $0.6660 and AUD/USD pared losses.
• Cross asset wise, US Treasury Yields are ~4bps lower across the curve. E-minis are up ~0.1% and Hang Seng is marginally softer. BBDXY is flat.
• Preliminary Services and Manufacturing PMIs from France, Germany and EU headline in Europe. UK Retail Sales and flash Services and Manufacturing PMI will also print. Further out we have Durable Goods Orders and US flash IHS Markit Manufacturing Index and S&P Global Services Index.