Data Watching Intensifies
News and data flow during the Asia session was limited, giving rise to another day of consolidation in the majors. AUDJPY and NZDJPY managed to advance however, despite the lack of an obvious trigger. Meanwhile US 10y yields briefly peeped above 2.0% yesterday in the wake of a robust Durable Goods Orders report. The texture of US economic data later this week will determine what happens next on that front, as will any material shift in stance from the FOMC on Wednesday. However, there are grounds for optimism at least regarding Friday’s payrolls print – raising the possibility that USDJPY could soon be drawing support from an unlikely quarter, independent of commentary originating from inside Japan.
Click here to read the full report: UBS Morning Adviser
UBS Investment Bank