Yen Unwinds Some Of Tuesday's Bounce, A$ & NZD Slightly Higher

The BBDXY USD index sits little changed, last near 1252.65. This has masked some divergences within the G10 space though. Most notable has been yen unwinding some of Tuesday's outcomes.

• USD/JPY sits back near 155.50, around 0.40% weaker in yen terms and close to session highs. We had mixed April wages data, with better headline results (boosted by annual wage outcomes of +5%), but the same sample basis was softer than forecast (see this link).
• For the FX pair we still remain comfortably off earlier Tuesday highs near 156.50. US yields are up a little over 1bps, while US equity futures sit higher.
• AUD and NZD are firmer against the USD by around 0.15%/ AUD/USD last at 0.6660, NZD/USD near 0.6185.
• We had a better than expected Caixin services PMI print in China, although follow through has been limited in terms of risk appetite. China equities are lower and HK markets sits comfortably off earlier highs.
• AUD/JPY sits just off session highs, last near 103.55/60. Earlier highs this week were above 104.70. Australian Q1 GDP was slightly below expectations (0.1% q/q, versus 0.2% projected), although private consumption proved more resilient than expected.
• Looking ahead, US ADP, the BOC and ISM Services are coming up. The ECB decision on Thursday and NFP Friday remain key event risks for the remainder of the week.