Dollar dropped as yields take a bath -US......>

FOREX: Dollar dropped as yields take a bath

-US 10y yields slipped further Monday, hitting new cycle lows below 2.07%

(lowest level since mid-2017). This left USD lower against all others in G10

with the exception of GBP and JPY, which slipped marginally after outperforming

at the tail-end of last week. USD/JPY's bounce from Y108 support was sustained

throughout Monday's US hours, shrugging off poorer-than-expected ISM

manufacturing data.

-AUD traded well, with AUD/USD looking to close above the $0.6950 level ahead of

the RBA rate decision, with markets now largely expecting a rate cut Tuesday.

NZD extended its outperformance throughout the session, although the return of

NZ traders after Monday's holiday could see the trend reverse. MXN sank for a

2nd day as President Trump doubled down on his Mexican import tariff threats,

stating he'd be "Okay" with tariffs in the event of talks breaking down.

-Attention turns to the RBA rate decision and subsequent press conference,

Eurozone CPI estimates and April US factory orders. Speeches are scheduled from

Fed's Williams, Powell and Brainard.