Forex Today: US Dollar consolidates losses ahead of mid-tier data

Here is what you need to know on Wednesday, April 24:

After weakening against its major rivals in the American session on Tuesday, the US Dollar (USD) seems to have stabilized in the European morning on Wednesday. IFO sentiment data from Germany will be watched closely by market participants midweek. Later in the day, the US economic docket will feature Durable Goods Orders for March.

The USD Index turned south in the second half of the day on Tuesday and closed the day 0.4% lower after the data from the US showed that the business activity in the private sector expanded at a softening pace in early April. The S&P Global Composite PMI declined to 50.9 from 52.1 in March, while the S&P Global Manufacturing PMI fell into the contraction territory, arriving at 49.9. Early Wednesday, the USD Index fluctuates in a narrow range below 106.00 and the benchmark 10-year US Treasury bond yield clings to modest daily gains above 4.6%. After Wall Street's main indexes registered gains for the second consecutive day on Tuesday, US stock index futures trade in positive territory in the European morning.

During the Asian trading hours, the data from Australia showed that inflation, as measured by the change in the Consumer Price Index (CPI), softened to 3.6% on a yearly basis in the first quarter from 4.1%. This reading, however, came in above the market expectation of 3.4%. On a quarterly basis, the CPI rose 1% in Q1. AUD/USD gathered bullish momentum following the inflation data and was last seen rising nearly 0.5% on the day above 0.6500.

Australian Dollar holds position due to risk-on sentiment amid stable US Dollar.

EUR/USD rose 0.5% on Tuesday and climbed above 1.0700 for the first time in over a week. The pair stays relatively quiet near 1.0700 in the European morning.

GBP/USD benefited from the broad USD weakness on Tuesday and gained 0.8%, snapping a three-day losing streak. The pair holds steady at around 1.2450 early Wednesday.

USD/JPY ignored the selling pressure surrounding the USD and extended its sideways action on Tuesday. The pair trades within a few pips of 155.00 in the European session.

Japanese Yen hangs near multi-decade low against USD, close to 155.00 mark.

After registering its largest one-day loss of the year by falling more than 2.5% on Monday, Gold continued to push lower and declined below $2,300 for the first time in nearly three weeks on Tuesday. Although XAU/USD managed to stage a rebound later in the day, it failed to gather momentum. Early Wednesday, the pair trades in a narrow band at around $2,320.

Gold price ticks higher amid modest USD weakness, positive risk tone might cap gains.