FOREX: USD Advance Continues, NZD/USD Back Simple 200-day MA
The USD is rallying further, particularly against higher beta plays like NZD and AUD. The BBDXY index was last up around 0.15%, close to 1232. This is fresh highs since mid April for the index. As we noted earlier focus will be on whether we can sustain this bounce through 1230 resistance.
- There doesn't appear to be any fresh catalysts for the move other than a continuation of USD gains from Thursday's session and a paring back of USD shorts.
- US equity futures were modestly lower but are now back in the green, albeit with Eminis still struggling to push above +5700. US yields are down slightly after rising strongly through Thursday trade.
- AUD/USD is back around 0.6380, so near early May levels. NZD/USD is under 0.5880, off around 0.45%, AUD is down close to 0.30%. For NZD/USD we are back to mid April levels and testing sub the simple 200-day MA.
- USD/JPY is the only G10 currency steady against the USD, last near 145.90, with the pair finding selling interest above 146.00 earlier. Japan data on labor earnings was weaker than forecast but better household spending data provided some offset. Japan officials stated they weren't thinking about selling US Tsys as part of trade negotiations.
- We do have China trade figures due, which could impact sentiment. Otherwise focus will be on the weekend US-China trade talk meetings.
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CHINA PRESS: Chief Economist Confidence Index Down In April
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