Dollar Modestly Higher, Weaker Commodities/Lower Equities Weigh On A$

The USD BBDXY index sits higher in the first part of Tuesday trade. We were last near 1247.5 (+0.10% firmer), slightly off session highs just above 1248.0.

• USD gains have been fairly uniform and broad based, albeit modest at this stage. USD/JPY was last around 156.50, this is close to session highs. We aren't too far away from May 14 highs at 156.74.
• AUD/USD is back to 0.6655/60, off close to 0.2%. We have seen some retracement in commodity prices from recent frothy levels, which has likely weighed at the margins. Regional equities are also mostly weaker, led by Hong Kong markets. The RBA mins didn't offer any great surprises relative to policy outcome earlier in May.
• NZD/USD has also weakened last under 0.6100.
• US Tsy futures sit off session highs, but have tracked tight ranges overall. Cash Tsy yields are little changed.
• Later the Fed’s Barkin, Waller, Williams, Bostic and Barr and BoE’s Bailey speak. US Philly Fed non-manufacturing for May and Canadian April CPI print.