Bitcoin (BTC) is testing the $116,000 level again on Tuesday. A firm close above this level would suggest gains toward $120,000. Institutional demand is growing, with over $260 million in BTC spot Exchange Traded Funds (ETF) inflows on Monday and firms like Strategy adding BTC to their reserves.
The US Dollar extends losses on Tuesday after a nearly 0.5% decline on Monday. Bears are focusing on 10-day lows, at 1.3760, with upside attempts capped below 1.3780 as the market awaits Canadian CPI and US Retail sales to frame interest rate decisions later this week.
Australian Dollar (AUD) is likely to continue to edge higher, but it is unlikely to reach 0.6700. In the longer run, the price action continues to suggest a higher AUD; the next level to watch is 0.6700, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.