[MARKET ANALYSIS] DXY is a touch firmer, Kiwi gains whilst the JPY digests further BoJ source reports

G10s are mixed against the USD, which is currently incrementally firmer. The Kiwi outperforms vs peers after hawkish RBNZ calls from analysts at ANZ; the Swiss Franc is the relative underperformer, as yield differentials widen once again. EUR was mildly pressured following a very poor French PMI reading, which surprisingly fell into contractionary territory. DXY currently holds within a 101.48 to 101.83 range, a touch firmer this morning, but net-weaker since the start of the week. The data docket lacked any Tier-1 US data and Fed speak, so USD action was largely dictated by credit-related woes, which hampered sentiment in the US. Next week, attention will be on the FOMC Policy Decision, where rates are expected to be kept on hold. The Kiwi is the mild outperformer this morning, and holds towards the upper end of a 0.5679 to 0.5699 range. Strength which comes after analysts at ANZ expect the RBNZ to deliver rate hikes at the next three meetings, citing Q3 core inflation data. The CHF is the slight laggard this morning, paring some of the strength seen in the prior session, as US yields rebound a touch today. Similarly, JPY holds towards the bottom of the pile, but faring a touch better vs its haven-counterpart. This comes after a source report which suggested that the BoJ is set to keep rate hikes on a fast track, adding that interest rates are still far from neutral. Only very mild strength was seen in JPY following this report, given it does not shift market expectations; money markets assign c. 80% chance of a hike in December. USD/JPY currently trades towards the upper end of a 156.07-157.16 range.