Growth currencies are outperforming and the USD is broadly weaker as we approach the NA session, as market participants take confidence in the stronger than expected employment release from Australia and consider the improving environment that has allowed for the RBNZ to hike rates. Softer data from China appear to be having a limited impact, perhaps as a result of the adjustment that had already occurred since last Friday. Meanwhile, the broader market tone is quiet with limited movement in equity futures or US 10Y yields. Market partic-ipants are likely shifting their focus back to US developments, given the release of February retail sales data (8:30am EST, see calendar page 3), jobless claims, import prices, business inventories, and the US monthly budget statement. However the key event for Thursday’s NA session is the nomination hearing for three Federal Reserve Board candidates (discussed below).
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Scotiabank