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The push higher by U.S. stocks, albeit weak and late, that kept the S&P futures market off the lows of the day as Wall Street trade wrapped up, enabled the major pairs to make a stand against the dollar buying that hit on Monday.
Ahead of the Reserve Bank of Australia's recent rate decision minutes at 21:30 EDT, and the Bank of Japan rate decision some time after 23:00 EDT, there will likely be an attempt to reverse the dollar buying.
That move sets up the Asian markets to possibly get a positive start to trade, bearing in mind that they had already sold off ahead of Wall Street trade. If so, this could be the perfect place to start to buy the majors, although selective buying is the name of the game.
Overall cable, Gbp/Usd, looks to be the most bullish pair right now, and the one, if any, that may reverse the Monday selling more easily than others ahead of the U.K. CPI release at 04:40 EDT on Tuesday.
The weakest pair is probably the euro at the moment, but with ZEW economic surveys out at 05:00 EDT (that do tend to bolster the euro) it may be that the selling could go on hold overnight.
However, if oil and gold move higher we will need to pay attention to aussie and cad reversing the recent Usd buying that reduced their value over the last few sessions. We will look to the Asian momentum to signal where dollar based sentiment can take things.