Move up in UST yields allowed the USD...>

EURO-DOLLAR: Move up in UST yields allowed the USD to pare recent losses Monday,

the sentiment continued into early Asia. EUR/USD had seen an extended recovery

high of $1.1175 (off Friday's initial NFP react low of $1.1128)before it drifted

lower through the NY session. Rate met initial support at $1.1140 before it

extended on to $1.1125, closing the day around $1.1130. Opening Asian trade saw

rate pressed down to $1.1122 but bounced back to $1.1131 into the Tokyo open

(returning after Monday's holiday). UST yields continued to nudge higher in

Asia, pushed USD/JPY up to Y108.83, the demand for USD's pressed EUR/USD to a

low of $1.1113 before recovery back to the $1.1125/30 area into Europe. Risk

appetite remained buoyed in Asia aided by progress in US-China trade

negotiations, a small cut in China 1-yr lending facility (5bps) and RBA leaving

rates unchanged, as was widely expected, with an accompanying slightly more

hawkish statement. Support $1.1100, resistance $1.1130, $1.1150. 

- EU PPI 1000GMT provides domestic data interest but more focus on US ISM

non-mfg index at 1500GMT. US Trade also of interest at 1330GMT. ECB Villeroy

0900GMT, ECB Visco 1530GMT. Fed Kaplan, Barkin and Kashkari on the agenda.