The greenback edged up slightly against the major currencies in the Tuesday session, with the exception of the British pound which improved by 0.7%. The major US equity bourses traded flat on the day with the Nasdaq marginally lower by almost 0.4% while the Dow Jones eked out a 0.1% gain. Pushing the US dollar higher was soft economic figures, which quelled global risk-appetite.

The closely watched July consumer confidence fell by more than consensus estimates to a five-month low at 50.4 compared with an upwardly revised reading of 54.3 in June. The July Richmond Fed survey beat calls for a decline to 12, instead printing at 16 versus a 23 print in the month prior. Rounding out today's reports was the S&P/Case-Shiller home price index, which bested calls for a drop in May, rising by 0.47% on a monthly basis versus an upwardly revised 0.61% in April and on a yearly basis, improving to 4.61% versus 3.83% in the previous year.

In the Wednesday session, traders will turn to the June durable goods orders. Consensus forecasts are looking for the headline figure to print at 1.0% in June versus a 1.1% decline in the previous month. Meanwhile, the excluding transportations figure is seen improving by 0.4%, albeit lower than the 0.9% print from May.

Aussie Slides on Inflation Data

The Australian dollar relinquished over 100-pips at the start of the Asian session following a softer than anticipated print in the consumer price index. While the RBA has shifted toward a more hawkish tone at the last meeting, incoming economic reports can temper the pace at which the Bank tightens policy in the upcoming meetings. The headline CPI figure missed calls for an increase to 1.0%, instead printing at 0.6% in Q2 compared with a 0.9% reading in the previous quarter while the yearly CPI figure climbed by less than anticipated to 3.1% from 2.9%. The RBA trimmed mean CPI fell to 0.5% versus 0.8% q/q and lower to 2.7% from 3.0% a year prior.

AUDUSD tumbled from 0.9027 to 0.8926 shortly after the data release. On the downside, support begins at 0.89, followed by 0.8860 and 0.8830. Subsequent floors are eyed at 0.88, backed by 0.8750 and 0.8720. Meanwhile, gains will target ceilings at 0.8970, followed by 0.90 and 0.9040. Additional resistance will emerge 0.9070, backed by 0.91 and 0.9150.