Yen Lags A$, NZD Amid Higher Commodities, But Aggregate Moves Modest

The USD BBDXY index sits little changed in the first part of Tuesday trade, last near 1226.6. There has been some cross G10 trends, with JPY underperforming the likes of AUD and NZD, but aggregate moves remain modest at this stage.

• USD/JPY was weaker in the first part of trade, but support was seen at lows in the 144.20/25 region. We last tracked near 144.70. On the topside we have been unable to break above 145.00.
• Cross asset wise, US yields are closed to unchanged, with US equity futures displaying a similar backdrop. Regional equities have been mixed, with HK/China slightly softer.
• A firmer commodity backdrop, with oil retaining most of its Monday gain, and firmer metals may be lending some support to the likes of AUD/ AUD/USD is up 0.15%, last 0.6780/85. This leaves us close to key resistance near 0.6800.
• NZD/USD is slightly firmer, last near 0.6220, but short of recent highs close to 0.6240.
• On the data front Japan services PPI was a touch weaker than projected, but market reaction at the time was minimal. China profits data was above the June outcome in y/y terms, but again market impact was negligible.
• Looking ahead, the second estimate of Q2 German GDP is out. Later there are US house price data and August consumer confidence and Richmond & Dallas activity indices.