Forex Today: Australian inflation comes to the fore

The US Dollar (USD) reversed its prior gains and came under some modest downside pressure on Tuesday, as market participants shifted their attention to another bout of the Trump-Fed spat ahead of the release of key inflation data toward the end of the week.

Here's what to watch on Wednesday, August 27:

The US Dollar Index (DXY) surrendered part of Monday's advance, coming closer to the 98.00 neighbourhood amid mixed US yields across the board. The usual weekly MBA Mortgage Applications are due, seconded by the EIA's weekly report on US crude oil stockpiles. Additionally, the Fed's Barkin is due to speak.

EUR/USD regained upside traction and managed to partially fade Friday's sharp sell-off, revisiting the 1.1660 zone. Germany's Consumer Confidence tracked by GfK will be in the spotlight on the domestic docket.

GBP/USD clocked acceptable gains on Tuesday, although it faltered just ahead of the key 1.3500 barrier. The CBI Distributive Trades will be the only release across the Channel.

USD/JPY traded on the back foot, briefly approaching the 147.00 region just to bounce afterwards amid renewed weakness in the Greenback. The weekly Foreign Bond Investment figures will be the next event on the Japanese calendar on August 28.

AUD/USD advanced marginally, coming within shouting distance of the key resistance zone at 0.6500. The Monthly CPI Indicator will be the salient event in Oz, seconded by the Westpac Leading Index and quarterly Construction Work Done.

Crude oil prices came under fresh pressure, snapping four consecutive daily advances amid some risk-off mood and despite steady geopolitical concerns.

Gold prices rose to two-week tops near $3,390 per troy ounce on the back of renewed selling pressure on the Greenback, mixed US yields, and rising unease surrounding the Fed's independence. Silver prices navigated an inconclusive day around $38.50 per ounce following Monday's marked decline.