- The Japanese yen was flat in early trade on Tuesday following closed markets in the U.S. and ahead of minor data.

Japan''s April CSPI is due at 0850 Tokyo time (2350 GMT) with a 3.3% gain expected.

USD/JPY traded flat at 101.93, while AUD/USD showed some life at 0.9246, up 0.10%.

Overnight, the dollar slid lower against a basket of other major currencies on Monday as trade volumes remained light with U.S. markets closed for the Memorial Day holiday and financial markets in the U.K. also shut for a public holiday.

The euro fell to three month lows against the dollar earlier Monday after anti-European Union and far-right parties performed strongly in European Parliament elections in some countries over the weekend.

The pair showed little reaction after European Central Bank President Mario Draghi said Monday the bank saw a risk of a deflationary cycle taking hold in the euro zone, the latest indication that it could ease monetary policy at its upcoming meeting next week.

"What we need to be particularly watchful for at the moment is the potential for a negative spiral to take hold between low inflation, falling inflation expectations and credit, in particular in stressed countries," Draghi said.

EUR/USD held flat at 1.3645.

The US Dollar Index, which tracks the performance of the greenback versus a basket of six other major currencies, slid 0.10% to 80.34.

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