Forex Today: Key US CPI takes centre stage amid a cautious Fed

The US Dollar set aside three consecutive daily advances on Tuesday, coming back to test the 108.00 region despite Chief Powell's prudent tone at his semiannual testimony and ahead of the upcoming US CPI data release.

Here is what you need to know on Wednesday, February 12:

The US Dollar Index (DXY) revisited the 108.00 support despite higher US yields across the board and the cautious message from Chair Powell. The release of the Inflation Rate will be at the centre of the debate, seconded by another testimony by Chair Powell, MBA Mortgage Applications and the EIA's weekly report on US crude oil inventories. In addition, the Fed's Bostic and Waller are due to speak.

EUR/USD managed well to leave behind a three-day negative streak, advancing to two-day peaks near 1.0350. Germany's Current Accounts results will be released along with the speech by the ECB's Nagel.

In line with its risk-linked peers, GBP/USD picked up upside traction and climbed north of 1.2400 the figure to hit new weekly tops. The speech by the BoE's Greene will be the sole release on the domestic docket.

USD/JPY added to the ongoing recovery, up for the third day in a row and retesting the 152.60 zone. The Japanese docket will only include January's Machine Tool Orders.

AUD/USD kept Monday's optimism well in place, although a move to the resistance area around 0.6300 remained elusive. Home Loans figures and Investment Lending for Homes will take centre stage.

WTI prices clinched their third daily gain in a row, surpassing the $73.00 mark per barrel on the back of the resumption of supply concerns.

Gold prices hit a record high past the $2,940 level per ounce troy, although that initial move rapidly fizzled out on the back of profit taking. Silver prices traded on the defensive, fading Monday's uptick and breaking below the $32.00 mark per ounce.