Softer USD Tone Persists

The BBDXY has extended lower in early dealings Tuesday, the index getting close to 1221.50 before some support emerged, last near 1221.60. This is very much in line with trends from the NY session. The early focus has been on US Tsys, which saw a late NY/early rally in futures post First Republic's earnings news. Cash Tsy yields are lower, the10yr back to 3.48% (close to -1bps for the session so far). US equity futures are down a touch.

• USD/JPY dipped under 134.00 in early dealings (low of 133.98) but is now back to 134.15/20, only slightly down on NY closing levels. The PPI for Mar printed at +1.6% y/y, versus +1.7% expected and a revised +1.7% for Feb. BoJ's Ueda is scheduled to appear before parliament again (9:40am local time).
• AUD and NZD have been relatively quiet, with both local markets shut for ANZAC day. AUD/USD was last 0.6700,/05 while NZD/USD is around 0.6175, both slightly firmer versus NY closing levels.
• EUR/USD is building on gains from Monday's session, last near 1.1060.
• There aren't any meaningful risk events for the rest of the Asia-Pac session, which will likely leave regional reaction to First Republic’s earnings and gyrations in Chinese equities front and centre. ECB & BoE speak will then come under the microscope during the London morning. Further out, NY hours will see the release of new home sales data, a couple of the major home price metrics, consumer confidence. Services activity indicators from the Philly & Dallas Feds and the Richmond Fed m’fing index.