Commodity Currencies Supported By Iron Ore Rise

The greenback is softer in early Asia on Tuesday, AUD/USD is around 9 pips higher while NZD/USD is the biggest G10 gainer so far lifting 16 pips after dropping yesterday with chatter of some leveraged accounts reloading NZD shorts.

• Australia ANZ consumer confidence rose to 112.5 from 111.6 previously, while commodity currencies are also getting a boost from higher iron ore after robust steel output figures yesterday from China.
• JPY is softer, USD/JPY is around 6 pips higher despite a weaker greenback. Data earlier showed Q1 preliminary GDP fell more than expected at 1.3%, consensus was for a 1.1% contraction, private consumption slowed less than expected at -1.4% compared to -1.9% consensus, while business spending was a weak spot at -1.4% against a 0.8% gain expected.
• Offshore yuan is flat, USD/CNH last down 5 pips at 6.5520. There were reports China has held talks with other members of the Comprehensive and Progressive Trans-Pacific Partnership, a group originated to exclude China and cement the US's position in the region.
• GBP has gained, GBP/USD up around 15 pips despite reports in The Times that ministers are considering contingency plans for local lockdowns or a delay to reopening after June 21 in response to concern about the spread of the Indian variant of coronavirus.