USD flows: USD firmer after data

US GDP much as expected, but prices were slightly above expectations on the core, but ADP employment much stronger than expected at 233k. While ADP is not a reliable enough guide to payrolls to have us revising our forecast for a below trend 75k (40k in the private sector) increase in the non-farm payroll, mainly due to the weather, it may serve to prevent much reaction to a weaker payroll number, and the USD should remain well supported. The USD is generally firmer on the data, recovering the losses seen in the European morning against the EUR and JPY, and testing the August highs against the CAD. USD/CAD looks to be ready to test 1.40 given firm US front end yields. AUD has been relatively resilient, having fallen below levels that look consistent with current yield spreads, and should continue to find support in the mid-0.65s.