Essentially, the dollar is just consolidating gains mostly in the last few sessions. It looks to be another case of markets reacting strongly to key economic data before encountering a cooling off period after. So far today, the dollar is not doing much as seen from the ranges below:
The aussie and kiwi are slightly higher, after the NZ inflation data earlier in the day here. The data makes it tough to justify any immediate policy pivot for the RBNZ and that’s keeping the kiwi a touch higher.
Besides that, there’s not much else to work with as we look towards European trading later. US futures are a little higher after falling slightly yesterday. Meanwhile, Treasury yields are still underpinned and that will keep the focus on USD/JPY as the 155.00 mark draws near. The pair hit a bit of an air pocket in US trading yesterday but was quickly bid back up, though BOJ intervention fears are definitely permeating.
This article was written by Justin Low at www.forexlive.com.
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