Yen Outperforming AUD & NZD Modestly, Data Outcomes Don't Shift Sentiment

USD index levels are little changed in the first part of Thursday dealing. The BBDXY was last near 1243.45, unchanged for the session.

• In the cross asset space US equity futures opened around 0.20% lower, which has helped yen at the margins on crosser (AUD and NZD lower), although we are away from worst levels for futures.
• US cash Tsy yields are mixed in the first part of trade.
• We have had quite a bit of data, but it hasn't shifted sentiment in the FX space. Japan retail sales were slightly firmer for Jan (+2.3% y/y, versus 2.0% forecast), but IP was weaker close to expectations (-1.5% y/y, -1.6% forecast). Comments from Kanda (the Vice Minister for International Affairs) around FX levels were consistent with recent rhetoric.
• USD/PY sits near 150.55 in recent dealings slightly down from end NY levels on Thursday.
• AUD/USD is a touch weaker last near 0.6490. Data out a little while ago showed Jan retrial sales slightly below expectations (+1.1% versus +1.5% expected), but there were positive revisions. Q4 Capex was firmer than forecast but not in terms of the component that feeds into GDP.
• Earlier Australian Treasurer Chalmers warned of the challenging growth backdrop in Q4 (see this link).
• NZD/USD is also slightly offered, last near 0.6090, slightly underperforming AUD. The ANZ Feb activity outlook rose to 29.5 from 25.6, but confidence eased back to 34.7 from 36.6.
• The data calendar is now largely clear, but we do have BoJ speak coming up soon (Takata).