Forex Today: Investors will closely follow the RBA ahead of US CPI

The Greenback overcame its initial bearish tone and closed Monday’s session with decent gains, supported by renewed geopolitical tensions and cautious sentiment ahead of the upcoming US inflation data release.

Here is what you need to know on Tuesday, December 10:

The US Dollar Index (DXY) rose for the second straight day and reclaimed the area beyond the 106.00 barrier amid a modest uptick in US yields. The NFIB Business Optimism Index is due, along with Unit Labor Costs and the API’s weekly report on US crude oil inventories.

EUR/USD added to Friday’s pullback after an unsuccessful attempt to revisit the 1.0600 barrier. Germany’s final Inflation Rate will take centre stage on the old continent.

GBP/USD traded on a firm footing, although it once again faltered just ahead of the key 1.2800 the figure. There will be no data releases across the Channel.

USD/JPY advanced to multi-day highs north of the 151.00 barrier following the Dollar’s gains and rising US yields.

AUD/USD made a sharp reversal and challenged the 0.6470 zone following a drop to sub-0.6400 levels, all ahead of the RBA meeting on Tuesday. Other than that, the Business Confidence index tracked by NAB is due.

Geopolitics are back in place, helping WTI prices rise sharply to two-day highs near the $69.00 mark per barrel.

Central bank buying and expectations of a Fed rate cut lifted Gold prices to two-week highs near $2,680 per troy ounce. Silver prices advanced to five-week highs north of the $32.00 mark per ounce, buoyed by expectations of further Chinese stimulus.