Essentially, the dollar is only consolidating its gains, mainly in recent sessions. This appears to be another case where markets react strongly to key economic data before hitting a cooling off period. So far today, the dollar hasn’t done much, as the ranges below show:
The Aussie and Kiwi are slightly higher, following New Zealand inflation data earlier today. The data makes it difficult to justify an immediate policy change for the RBNZ, which keeps the kiwi a little higher.
Other than that, there’s not much else to work on as we look to European trade later. US futures are a little higher after falling slightly yesterday. Meanwhile, Treasury yields are still supported, which will keep the focus on USD/JPY as it approaches the 155.00 mark. The pair hit a small hole in US trading yesterday, but quickly recovered, although fears of BoJ intervention are definitely omnipresent.
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