Forex Today: What if the RBA...?

The US Dollar alternated gains with losses in the area of two-month lows in a context of marginal trading conditions amid the inactivity in the US markets due to the Washington's Day holiday.

Here is what you need to know on Tuesday, February 18:

The US Dollar Index (DXY) navigated a vacillating session in the sub-107.00 zone, or multi-week lows, following the absence of volatility in the broader FX galaxy. The NAHB Housing Market Index is due, along with the NY Empire State Manufacturing Index, TIC Flows, and speeches by Waller, Barr and Daly.

EUR/USD traded with marginal loses after returning to the region below the 1.0500 mark. The ZEW's Economic Sentiment gauge in Germany and the euro bloc will precede the speech by the ECB's Cipollone and the ECOFIN Meeting.

GBP/USD maintained its bullish bias in place above the key 1.2600 hurdle. The UK docket will feature the labour market report along with the speech by the BoE's Bailey.

Further appreciation of the Japanese yen kept USD/JPY on the back foot in the area of multi-day lows around 151.30. The BoJ's Takada will be the only release in the domestic calendar.

AUD/USD clinched new two-months tops around 0.6370, extending further its monthly recovery. The RBA will hold its monetary policy meeting, followed by Governor M. Bullock's press conference.

Prices of WTI rebounded modestly amid the indecisive greenback, potential ceasefire talks in the Russia-Ukraine war and supply disruptions in the Caspian region.

Prices of Gold partially faded Friday's deep sell-off and flirted with the $2,900 region against the backdrop of the lack of direction in the dollar and steady concerns around US tariffs. Silver prices followed suit and advanced to the $32.50 zone per ounce.