FOREX: USD Recovery Continues, AUD/USD Close To 100-day EMA Support

The USD is ticking higher against most of the majors in the first part of Tuesday trade, albeit with stronger gains against the higher beta plays of AUD, NZD and NOK. The BBDXY index was last up nearly 0.10% to 1236.4.

• The USD index is close to intra-session highs from Monday (near 1236.45). Earlier September highs were at 1238.31. Support for the USD is evident from a slightly weaker US equity futures backdrop (Nasdaq futures off around 0.20% at this stage). Regional equity markets, which are open, are mostly higher at this stage.
• More broadly the USD recovery is modestly extending from Friday's NFP outcome and ahead of further key event risks with tomorrow's US Presidential debate in focus along with the US CPI print.
• Higher beta FX plays are off around 0.20% at this stage. AUD/USD testing sub intra-session lows from Monday under 0.6650. This is right on the 100-day EMA, while the 200-day is further south near 0.6625.The Westpac Consumer Sentiment Index fell 0.5%m/m for Sep, to 84.6. We are up from 2023 lows, but remain depressed by historical standards.
• NZD/USD is back to 0.6135, but is only sub its 20-day EMA at this stage (50-day is near 0.6110).
• Earlier data showed Q2 manufacturing activity rose 0.6% in volume terms (versus -0.3%q/q in Q1), but NZD sentiment wasn't shifted.
• The safe havens are down against the USD, but are marginally outperforming the higher beta plays./ USD/JPY last near 143.30, up 0.10%. US yields are closed to unchanged in early Tuesday dealings.
• Coming up we have Australian business confidence from NAB. China trade figures are also out later.