USD Down Slightly, As Yen Firms, But Tight Ranges Prevail

G10 FX trends are relatively muted in the first part of Wednesday Asia Pac trade. The USD BBDXY index sits down a touch but remains above the 1230 level.

• USD/JPY is moderately softer, but remains well within Tuesday ranges. The pair was last near 147.50/55, around 0.10% stronger in yen terms.
• US yields are down slightly in early cash trading, but losses are less than 1bp at this stage (following yield gains across the curve on Tuesday post the stronger than expected US CPI print). US equity futures sit close to flat after strong cash gains in US trade on Tuesday, with analysts upgrades for the SPX outlook outweighing the higher yield backdrop.
• Regional equities should be supported today, which may lend some support to higher beta plays like AUD and NZD, but early moves have been steady. AUD/USD last near 0.6610, a touch, while NZD/USD was close to 0.6150. The AUD/NZD cross is near 1.0750, close to early Feb highs.
• Earlier data showed a dip in Feb food prices in NZ, while in Aust the CBA household spending measure was down -0.3% m/m, but still rose 3.5% y/y.
• The data calendar is light for the remainder or today's Asia Pac session.