Modest USD Selling Pressure Early

G10 FX markets have gotten off to a relatively muted start for Tuesday's session. The USD tone is slightly offered, but overall moves are modest so far. The BBDXY sits -0.05% sub NY closing levels, last around 1234.30/40. Yesterday's low was near 1231.50, while the high was 1236.60, so we remain very much within recent ranges ahead of key event risks (kicking off with the US CPI print later).

• In the cross asset space, US equity futures are a touch higher after Monday's impressive rally, Eminis last near 4389. US yields are a touch lower, which may be weighing on the USD at the margin, the 3yr back to 4.21% (-1.4bps).
• USD/JPY is last in the 139.40/50 region, around -0.10% sub NY closing levels. Q2 BSI industry and manufacturing conditions improved in Q2, but the market hasn't reacted.
• NZD/USD was last 0.6125/30, a touch higher for the session. Earlier data showed Apr net migration down from the Mar pace, but the trend remains positive.
• AUD/USD is holding just under 0.6760, slightly down from Monday session highs (around 0.6775). A weaker commodity price backdrop weighing at the margins. Earlier data showed spending intentions behavior is shifting amid cost of living pressures. Consumer sentiment prints shortly, followed by business confidence later.
• Otherwise the data calendar is light ahead of the US CPI print later.