The AUD took the lead as it appreciated around the release of minutes from the most recent RBA policy meeting. Although there was little in the way of immediate reaction, as the document didn’t reveal much new information. However, BBG sources pointed to some AUD demand from Australian exporters seeking to hedge their positions after the central bank highlighted a better growth outlook. Resulting flows were said to have prompted leveraged funds to engage in short covering. This allowed the Aussie to shake off its earlier weakness.

Meanwhile, NZD tracked the AUD on both swings.

USD underperformed its G10 peers - DXY pulled back from yesterday's highs overnight, but, this morning it's testing those highs again. Nevertheless,price action of G10 crosses was rather limited.

Economic Data:

Tuesday morning starts with the release of the German producer price inflation at 0700 BST, followed by the publication of the CBI Industrial Trends survey at 1100 BST. In the US, the release of the Redbook Retail Sales Index at 1355BST is worth noting.

Australia Interest Rate:

AUD/USD (blue) vs NZD/USD (orange)