US: Trump Cabinet Meeting Underway Shortly, Iran And DHS Shutdown In Focus

The combination of a recovery from lows in e-minis, AbbVie announcing a 7-part US$ benchmark debt sale and hedging ahead of the impending pricing of the 30-Year Spanish syndication weighs on core global FI markets over the last hour or so

• The space trades away from session highs as a result, with Bund bulls unable to establish themselves below 2.70% in yield terms, while year-to-date lows in U.S. 10-Year yields remain intact.

• After consolidating for much of the late European morning around 155.80, USDJPY has edged a little higher in recent trade. This has taken the pair back above 156.00 and narrows the gap to both session highs and the key touted resistance at 156.29.
• This dynamic is helping the USD index push to fresh session highs at typing and briefly placed EURUSD at the bottom of its tight overnight range just below 1.1770.
• After the yen, the Australian dollar is the second worst performer on Tuesday, as equities consolidate yesterday’s late selloff and the precious metals complex gives up some of Monday’s impressive advance.
• On the downside, the 20-day EMA has been a key support point in recent weeks for AUDUSD, intersecting today at 0.7013. This average will remain an important point as we approach the Australia Jan CPI data scheduled on Wednesday.
• While the monthly CPI series remains fairly new from a time series standpoint and the RBA is still likely to place greater weight on the quarterly prints, the data will be eyed for any signs of persistent inflation pressures which may bolster expectations for further imminent tightening from the central bank.

• MNI: US Q4 FHFA HPI Q/Q SA +0.8% V +1.8% Q4 2025