JPY: USD/JPY Tests 50-day EMA Resistance Amid US Yield Rise, PPI Locally Today

AUD/USD tracks near 0.6160/65 in early Tuesday dealings, after rising close to 0.25% for Monday's session. Broader USD trends were mixed with EU currencies still seeing weakness (albeit up from lows), while commodity related FX did slightly better. The USD BBDXY index didn't shift much, last near 1320.

• FX risk sentiment stabilized as we progressed through the US session. EU equities moved up from session lows, but still finished weaker (off close to 0.50%). US equity markets were mixed, the SPX rising 0.16%, but Nasdaq off 0.38%.
• AUD/USD steadily recovered from fresh cycle lows (0.6131) to current levels. Technical sentiment remains bearish with focus on downside round figure support at 0.6100. Initial firm resistance to monitor is 0.6247, 20-day EMA. The 50-day EMA is at 0.6365.
• More action was evident in USD/JPY, with this pair supported sub 157.00, to be back around 157.70 in latest dealings. AUD/JPY sits back around 97.15/20 in latest dealings, against intra-session lows on Monday of 96.38.
• US yields mostly stayed on the front foot, around 2-4bps firmer across the key benchmarks, although there was limited data out overnight. NY Fed 1yr inflation expectations were steady, but longer dated expectations were mixed.
• In the commodity space, the Bloomberg aggregate index rose a further 0.55%, the metals index a further 0.38% firmer (its 6th straight gain).
• Locally today we have the Westpac consumer sentiment reading on tap.