The US dollar traded steady at the beginning of the Asian session after declining at the end of the previous session due to surges in the Wall Street market, with the S&P 500 and Nasdaq hitting record highs.
Overall, the dollar index, which measures the strength of the greenback against most major currencies, continued to strengthen by trading at 92.20.
According to analysts, this price action indicates that investors are expecting a reading of US inflation data and a good outlook from the speech of Federal Reserve (Fed) Chairman Jerome Powell later.
The strengthening of treasury yields shows that investors are not worried about the bad statement from Powell. US 10 -year bond yields remained stable at 1.36% in the Asian session.
Inflation readings are expected to continue to increase but with slower growth, which will reduce the pressure on the Fed to take action.
Uncertainty about the transmission of Covid-19 is growing, causing trading of most major currencies to be limited.
The negative impact of the closure in Australia and the prospect of slower trade reports and Chinese economic growth will continue to weigh on Aussie dollar trading.
Meanwhile, the pound remained traded stable after UK Health Minister Sajid Javid confirmed that the country was on track to achieve vaccination targets and they would move to the next level to normal.
