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Yen Shrugs Off Q1 GDP Weakness, BBDXY Index Threatening 100-day MA Support

FOREX

USD sentiment remains weaker. The BBDXY is off a further 0.20%, last near 1242.0. We are back near lows from April 10 and also challenging the simple 100-day MA support point.

  • Yen continues to lead gains, up around 0.60% at this stage, with USD/JPY tracking under the 154.00 figure level in recent dealings.
  • We did see some retracement highs in USD/JPY post the weaker Q1 GDP print, but moves back above 154.50 were sold by the market. Japan growth may improve in Q2, given some weakness in Q1 likely reflected one-off factors.
  • In any case, the continued push higher in US Tsy futures is the overriding driver of sentiment. 10yr futures are comfortably above Wednesday highs. In yield terms, the 10yr is off a further 1.6bps.
  • AUD and NZD continue to push higher, both up a little over 0.2% against the USD. AUD/USD last near 0.6710, while NZD/USD is at 0.6135.
  • Coming up soon we have Aust jobs data for April.

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