BBDXY Off Lows, CHF CPI Eyed

The broader USD (BBDXY) sits a little above both its Monday and Asia-Pac lows, after reversing early Asia weakness.

• A reminder that the PCE and ISM m’fing data seen over the past couple of sessions has helped limit USD rallies, with a modest dovish shift in FOMC-dated OIS leaving ~40bp of ’24 cuts priced.
• Little cue from equities in Asia, with regional benchmarks either side of unchanged and e-minis essentially flat as London participants join.
• The CHF marginally outperforms most G10 peers ahead of this morning’s Swiss CPI data. CHF TWI has recovered from ’24 lows, with SNB Chair Jordan’s warning on the potential need to sell FX and “small” upside risks to the Bank’s inflation forecasts supporting in recent days. CHF May headline CPI readings are seen steady at +1.4% Y/Y and +0.3% M/M.
• USD/JPY traded between 155.99-156.49 in Tokyo, with yesterday’s low respected. Finance Minister Suzuki warned on the economic impact of significant cuts to car production, while also noting that recent JPY intervention had some effects on the market. Elsewhere, RTRS reported that “Japan's government will warn of the pain a weak yen may inflict on households in this year's long-term economic policy roadmap,” citing a draft they have seen.
• AUD finds itself at the foot of the G10 FX table, with a surprise current account deficit applying some limited pressure.
• NZD also struggles against most G10 peers on AUD spill over.
• Swiss CPI, along with U.S. JOLTS and factory orders data, provide the risk events of note today.