USD/JPY Can't Crack 135.50, A$ Recovers Some Ground

The USD is mixed at the start of the week, USD/JPY is trying to break higher, while risk sensitive currencies have received some support from higher US equity futures.

• USD/JPY made another run at 135.50 but ran out of steam just ahead of that level. We now sit back sub 135.20.
• EUR/USD remains sub 1.05, but is up off the opening lows just above1.0460. French President Macron has lost his absolute majority in parliament, which is likely to be a focus point when EU markets come in.
• AUD/USD is higher, pushing above 0.6950, before running into selling resistance. We are still around 0.20% NY closing levels from last week. The currency has shrugged off a sharp slump in iron ore futures (down 4.3% to $114.85).
• Higher equities are helping, with US futures all in positive territory, albeit away from levels.
• NZD/USD is slightly firmer at 0.6320. Earlier the PSI rose to 55.2 in May, from a revised 52.2 in April. This is the highest level for the index since July last year.
• Korean equities slumped after opening higher. The Kospi is down over 1%, with offshore investors reportedly dumping local chip stocks. 1 month USD/KRW is edging higher to 1292, while spot is above 1293.
• USD/CNH has remained range bound around the 6.7100 level.