USD Ticks Lower, Both Aust & Japan Manufacturing Sentiment Improves

The USD is a touch weaker in the first part of Tuesday trade. The BBDXY sits just under 1264, just below NY closing levels from Monday. G10 currencies have ticked higher against the USD, but moves have been fairly muted overall.

• Focus remains on US equity market sentiment given this week's busy earnings schedule. Futures opened softer, but sit away from lows in recent dealings (last close to flat for Eminis). For US Treasuries, we sit close to unchanged in yield terms.
• AUD/USD is near 0.6455, slightly above end NY levels, likewise for NZD/USD, near 0.5920. Both currencies outperformed on Monday amid the broader risk rally led by equities. Earlier Australian preliminary PMIs for April pointed to an improved growth backdrop, but the FX market didn't react (manufacturing up to 49.9 from 47.3).
• USD/JPY is marginally lower, last under 154.80. We remain close to Monday cyclical highs, with eyes on a 155.00 test, albeit with the market mindful of fresh FX rhetoric or actual intervention.
• We have also had Japan preliminary PMIs print for April. Like the AU prints, we have seen a firmer backdrop for manufacturing (49.9 versus 48.2 prior), but still sub the 50.0 expansion/contraction point. Again, market reaction has been minimal.
• The data calendar is light for the rest of the Asia Pac session, leaving FX sentiment dictated by broader risk flows.