Forex Today: US Dollar remains firm on the back of higher US Treasury yields

After a quiet Monday regarding economic data, Tuesday is a busy day starting with Japan's GDP data. Later, the RBA meeting minutes and Australia's Wage Price Index are due. Chinese data will be closely watched, including Retail Sales and Industrial Production. Additionally, data due on Tuesday includes UK employment figures and US Retail Sales.

Here is what you need to know on Tuesday, August 15:

Wall Street opened the week in the green. The Dow Jones gained 0.07%, and the Nasdaq rose by 1.05%. Investors showed optimism for a soft landing in the economy.

The US Dollar Index posted its highest daily close in over a month, above 103.15. However, it finished far from the intraday high, suggesting that it could consolidate over the next few hours.

A key support for the Greenback remains US yields. The 10-year yield climbed to 4.20%, and the 2-year yield to 4.97%, reaching the highest levels in a month. The uptrend in yields remains firm, even as market participants expect the Federal Reserve to stay on hold at the next FOMC meeting.

The US will report Retail Sales, which is expected to show a 0.4% increase in July. Also due is the NY Empire Manufacturing Index.

EUR/USD dropped again, falling below key moving averages but managed to rise above 1.0900 during the American session. The Euro also lost ground against the Pound and the Swiss Franc. The ZEW Survey is due on Tuesday.

GBP/USD finished flat after recovering during the American session. The pair bottomed at 1.2616, matching the 100-day Simple Moving Average (SMA), and rebounded toward 1.2700. The UK will report employment data for the three months ended in June. On Wednesday, more data is due with the inflation report.

USD/JPY rose for the sixth consecutive day and posted the highest daily close since November, near 145.50. Japan will release Q2 Gross Domestic Product (GDP) data on Tuesday, as well as Industrial Production.

USD/CHF finished higher but below 0.8800. The pair peaked at 0.8831, the highest intraday level in a month, and then pulled back. The Swiss Producer and Import Price Index is due on Tuesday.

USD/CAD continues to move with an upward bias, holding firm above 1.3400. Inflation data is due from Canada on Tuesday. The Consumer Price Index (CPI) is expected to show a 0.3% monthly increase in July. Also due is the Manufacturing Sales report.

AUD/USD fell for the fifth consecutive day but ended off its lows. The pair found support at the 0.6450 area and climbed back to 0.6500. Antipodean currencies are being affected by the decline in commodity prices and a cautious tone across financial markets. The Reserve Bank of Australia (RBA) will release the minutes of its latest meeting, during which it kept the key interest rate unchanged at 4.10%. The Wage Price Index is also due.

NZD/USD posted its lowest daily close since mid-November, trading below the 0.6000 level. The bias points to further losses; however, the close far from the low suggests that the pair may be poised for some consolidation. On Wednesday, the Reserve Bank of New Zealand (RBNZ) will announce its decision on monetary policy. No change is expected from the central bank.

Gold continued to slide but held above $1,900, while Silver lost ground, trimming losses during the American session, ending around $22.55.

The worst-performing currency was the Argentine Peso after the government devalued the currency by 20% following Sunday's primary presidential elections. The Chinese Yuan reached its lowest level against the US Dollar since October of last year.