The USD has seen support so far early into this week, USDJPY recovered from the 16-month lows of 105.25 seen at the end of last week. The US Dollar index (DXY) is seeing consolidation just below 90 levels and currently at 89.97 after a positive close on Monday.

Last week’s lows for the USDJPY were trigerred by President Trump’s talk of tariffs on imported steel and aluminium.

The Euro recovered from an initial sell off, caused by a set of inconclusive results coming from Italy’s general elections. EURUSD briefly touched 1.2269 early into Monday’s session, but was seen recovering after that to close yesterday’s session in positive. Today support continues albeit in small doses as even the USD manages to stop its bleeding.

The RBA left its cash rate target unchanged at 1.5% easrlier this morning. The actual figure was in line with expectations. AUDUSD has taken somewhat of a small reprieve from its downtrend, but the pull lower has likely not changed its trajectory as the Aussie remains virtually untouched by today’s data.

Later today we have Retail PMIs from the EZ, and Factory orders and Durable Goods orders from the US.