FOREX: Yen Slightly Firmer Against NZD & AUD, USD Index Little Changed
The USD BBDXY index sits little changed in latest dealings, last near 1294.2, but we are seeing some modest yen outperformance against the like of NZD and AUD in recent trade.
- USD/JPY has been volatile. The pair got to earlier highs of 150.15, but now sits back at 149.55/60, up around 0.15% in yen terms. Session lows rest at 149.46. The earlier spike followed the softer Tokyo Feb CPI print. The headline was weighed down by lower food and utility prices, but other components were more upbeat.
- For USD/JPY Thursday highs were at 150.16, while downside focus will rest on a re-test sub 149.00. BoJ Deputy Governor Uchida is before parliament at the moment. He stated that inflation is gradually rising towards 2%, while the economy is also gradually recovering.
- AUD and NZD are slightly weaker, in line with trends from Thursday, amid Trump tariff threats and weaker equity sentiment. AUD/USD is at 0.6230/05, with earlier Feb lows sub 0.6200. NZD/USD is back at 0.5625/30. Key support is 0.5600 (Feb 12 lows) a break here would then open up a move to retest the Feb 3 lows of 0.5516.
- In the cross asset space, regional equities are down in line with sharp Wall St losses from Thursday. US equity futures are a touch higher, but in the 0.15-0.30% range so far today. US yields are weaker in the first part of Friday trade, which has likely helped curb earlier USD/JPY gains.
- AUD/JPY has made fresh lows of 93.13, but sits slightly higher now, last near 93.25. NZD/JPY is approaching 84.00.
- The data calendar is light for the remainder of the Asia Pac session.
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Historical bullets
AUSTRALIA DATA: A$ & Local Yields Softer Post Q4 CPI Miss
The A$ is weaker in the aftermath of the Q4 CPI print. We are back around 0.6225/30, off close to 0.40%. Jan 21 lows at 0.6209 will be in focus on a further pull back. In the bond futures space, ym +7 xm +5, slightly off best levels. OIS is 3 to 7bps softer across RBA meeting dates.
- Q4 CPI was weaker than forecast across both headline and trimmed mean. More details to follow.
AUSTRALIA DATA: Underlying CPI Inflation Moderates Slightly More Than Expected
Q4 trimmed mean CPI rose 0.5% q/q and 3.2% y/y, while headline was +0.2% q/q & 2.4% - both moderated more than expected. The December measures posted increases of 2.7% y/y and 2.5% respectively. More details to follow. See ABS press release here.
MNI: AUSTRALIA MONTHLY DEC CPI 0.2% MM, 2.5% YY
- MNI: AUSTRALIA MONTHLY DEC CPI 0.2% MM, 2.5% YY
