USD Softens On Lower Yields Firmer Regional Equities

The USD sits further away from recent highs, last near 1241.50, having lost ~0.1% in Tuesday trade to date. A modest drift lower in US yields has weighed, although we are away from session lows. 2yr last around 5.035%, 10yr at 4.19%. Regional equities are tracking with a positive tone as well, which has seen higher beta FX outperform the yen, albeit at the margins.

• USD/JPY got close to Monday session lows (low of 146.31), as US yields softened, before edging back to 146.45 this afternoon. Earlier July unemployment figures unexpectedly ticked higher to 2.7% (2.5% forecast), but this didn't impact sentiment, while we saw a poor 2yr debt auction as well. Broader US-JP yield differentials haven't moved a great deal though.
• AUD/USD is up around 0.30%, tracking near 0.6445/50. The better regional equity tone has helped, along with higher metal prices. Copper is +0.60%, iron ore futures, +0.50%. Highs from last week near 0.6490 beckon the top side, while recent lows rest at 0.6365. Later on, incoming RBA Governor Bullock speaks on 'Climate change and central banks'.
• NZD/USD has risen, but ran into some resistance around the 0.5930 level, we last track near 0.5920.
• GBP/USD has slightly outperformed the other majors, last at 1.2625 (~0.20% firmer).
• Looking ahead we have German consumer confidence, while later the Fed’s Barr speaks about banking services and there are US June house prices, July JOLTS job openings and August consumer confidence & Dallas Fed services.