Risk appetite improved o/n as the major......>

DOLLAR: Risk appetite improved o/n as the major Asia-Pacific equity benchmarks

consolidated the positive lead from Wall St. The dollar sits bottom of the pile

and is registering losses across all of G10 at the European crossover.

- The DXY based ahead of the 100-dma (96.99) yesterday, but failed to gain

traction with recovery efforts holding shallow into the close. The heavy tone

spilled over into Asia and currently holds toward the lower end of its narrow

97.01-13 range. Bears look for a close below the 100-dma to cement the

downtrend, the 61.8% retracement of the Mar-Apr rise is placed behind at 96.74,

ahead of the 200-dma at 96.51 (not closed below since Apr 2018).

- Gold remains at elevated levels, consolidating above $1327.00. The Jun 4 high

provides resistance at $1329.14, a breaks opens the channel top around $1330.75.

- Brent & Crude hold toward the lower end of their respective tight ranges, last

$61.50/52.96. UST yields briefly rallied yesterday. The 10y traded above 2.14%,

but has since drifted back toward the 2.10% area.

- ADP(1215GMT) & ISM Non-mfg(1400GMT) the main highlights today. ISM is expected

to rebound to 55.9 in May after dipping to 55.5 in April.