USD rallied hard on Tuesday in line with......>

FOREX: USD rallied hard on Tuesday in line with the surge in nominal and real US

bond yields to fresh multi-year highs. The DXY briefly rose above the May 9 high

reaching 93.46 but gave back some gains at the close.

 - USDJPY broke through resistance at 110.00, closing through its 200DMA (at

110.19) as US/JP yield spreads hit fresh highs. Japan GDP data is out shortly

and it would likely take a very weak print to trigger safe haven buying. 

- EUR hit a new YTD low, falling below its May 9 low in spite of a further rise

in Bund yields, while the CHF outperformed among the majors as EURCHF dropped to

1-month lows. 

- AUD and NZD both underperformed in line with general risk eversion in EM FX

with the NZD closing in at support around 0.6800.