USD Remains Softer, Higher Beta FX Outperforming Marginally

The USD BBDXY index sits down around 0.10% in the first part of Tuesday trade, back close to the 1246.4 level. USD weakness has been fairly uniform against the majors, albeit with high beta FX outperforming modestly.

• NZD/USD was the early outperformer but AUD gains have caught up as the session progressed. The AUD/NZD appeared to find some support ahead of the 1.0800 level (now back at 1.0825/30).
• We had Aust, NZ and Japan data, but nothing that shifted the sentiment needle materially. Aust April retail sales were a touch below expectations (up 0.1% m/m), while April PPI services for Japan rose 2.8y/y% (against a 2.3% forecast).
• AUD/USD was last near 0.6670, while NZD/USD is around the 0.6160 level, still a fresh multi month high for the Kiwi back to mid March.
• USD/JPY sits slightly lower, last near 156.70, but well within recent ranges. FinMin Sukuzi was on the wires earlier, with familiar rhetoric around FX markets.
• In the cross asset space, we have had firmer US equity futures (a USD negative), although the regional equity tone is more mixed. US yields sit slightly lower, led by the front end.
• Looking ahead, we currently have Fed’s Bowman and ECB Schnabel headlines (who are speaking in Japan) crossing. Then later Kashkari, Cook and Daly appear. In terms of data, US March house price and May Conference Board consumer confidence data are released.