The aussie sees mild gains after Australian Q4 CPI data earlier
Australia inflation kept more steady towards the end of last year and that is helping to see RBA rate cut expectations pare back a little more ahead of next week. In turn, that is pushing the aussie a little higher to start the session.
The kiwi is weighed lower on AUD/NZD buying as the AU-NZ OIS spread narrows following the data release earlier - in favour of the aussie.
Other major currencies are keeping more steady and trading in narrow ranges with USD/JPY seen just above the 109.00 handle around 109.10 currently.
The risk rebound yesterday pushed risk trades higher but there is no extension of that today as markets are looking more mixed at the moment. US futures are up by 0.3% but Treasury yields are keeping lower, with 10-year yields down by 1.4 bps to 1.642%.
Looking ahead, the key focus is still how will investors grapple with the risk mood amid coronavirus concerns, key tech earnings in Wall Street, and the FOMC meeting today.
