USD strength was the order of the Asia-Pacific session, as the greenback appreciated against the backdrop of higher Treasury yields and uncertainty on the back of the possibility of trade talks between the U.S. & China in September.

The NZD's tumult continued, with NZD/USD registering a fresh cycle low, just above a key down trend channel support, which comes in at $0.6267 today.

The effects of a much wider than expected Australian current account surplus offset the weaker than expected retail sales print, although AUD/USD was not insulated from the USD strength.  

EUR/USD continued to set new cycle lows, while cable also struggled as GBP traders assess the latest Brexit/political events in Westminster.

USD/CNY edged lower after the rate registered a fresh all time high on Monday, with the PBoC setting USD/CNY below exp. yet again on Tuesday. Elsewhere, KRW struggled on the back of the recent CNH price action & soft South Korean CPI data.

EconomicData:

The highlights of Europe's data calendar Tuesday are the publications of the UK's construction PMI at 0930 BST and the EZ's producer price inflation at 1000 BST. The release of the ISM manufacturing index at 1500 BST will be closely watched in the US.

Dollar Index (DXY - Daily)

‍

US 10 Year Bond Yield

‍

‍