USD Firms On Lower US Tsys Futures, NZD Underperforming

The USD holds firmer against all the majors, but is away from best levels. The BBDXY USD index last tracked near 1251.4 (up around 0.15%), against earlier highs of 1252.31.

• The USD was firmer from the open, as the market digested the weekend news of the Trump assassination attempt and increased odds of a Trump win in November. US President Biden called for the US political temperature to be lowered, while Trump's speech at the National Republican Convention this week will reportedly call for unity.
• US Tsy futures gaped lower at the open, providing further USD support, but there was not follow through and we sit higher in latest dealings. There is no cash Tsy trading today as Japan markets are shut. US equity futures sit 0.20-0.30% firmer at this stage.
• USD/JPY got to 158.42 earlier, but sits back at 158.00 in latest dealings, slightly higher for the session. Intervention speculation continues in the near term.
• The Kiwi is down against most G10 currencies as NZGB yields fall to their lowest since June and the USD strengthens on the back of a haven bid in the USD, while NZ Performance Services Index fell to 40.2 in June, this is the fourth consecutive monthly decline and the lowest since August 2021. NZD/USD last near 0.6100, off 0.3%. AUD/NZD is 0.22% higher today at 1.1110, after earlier testing Friday's highs of 1.1118. The AU-NZ 2yr swap continues to tick higher and now sits at -9bps, back at November 2020 levels after rallying 41bps in July.
• AUD/USD is down a touch, last near 0.6775. Weaker China GDP/retail sales data didn't impact sentiment greatly.
• NOK & SEK are off by 0.45% and 0.35% to be the worst G10 performers, although liquidity will be lighter in these pairs during Asia Pac hours.
• Looking ahead, the US Empire Survey is due. ECB speak from Lagarde is also out. Later on Fed speak from Chair Powell will be in focus (ahead of the blackout period).