USD Finds Support From Equity Weakness

Early USD weakness had little follow through, as weaker equity sentiment filtered through into dollar support. The BBDXY got close to 1221 early but we now sit back above 1223, not too far off session highs, but around NY closing levels from Monday.

• Carry over from First Republics earning's result boosted US Tsy futures, and this aided a early move in USD/JPY sub 134.00, but this dip was supported. USD/JPY climbed higher into the Tokyo fix and has stayed in a rough 134.20/134.40 range since.
• Comments from BoJ Governor Ueda in parliament were mixed, discussing what conditions would warrant a shift in policy, while also noting tightening now would lower inflation. Overall, these comments didn't shift sentiment a great deal.
• USD/JPY still looks too high relative to the lower US yield backdrop, but prominent sell-side name stated that EUR/JPY demand may be evident from a month end rebalancing standpoint.
• EUR/USD pushed higher today but ran out of steam near 1.1070, but is back to 1.1055 now.
• AUD and NZD ran out of momentum, although AUD saw more downside, moving back to 0.6675/80 in holiday impacted markets, with both AU and NZ markets closed for ANZAC day. NZD/USD is back to 0.6165/70. A$ likely saw great headwinds from weakness in China related equities. The AUD/NZD cross continued to correct, back down to 1.0825/30. Q1 AU CPI prints tomorrow.
• Looking ahead, 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.