The Australian Dollar (AUD) is trading higher against the US Dollar (USD) for the second consecutive day on Tuesday, but the pair failed to find any significant acceptance above 0.6950.

The Euro (EUR) extends losses against the British Pound (GBP) for the second consecutive day on Tuesday, approaching the bottom of its near-term horizontal range at 0.8700, from Monday’s highs at 0.8735.

National Bank of Canada (NBC) economists Stéfane Marion and Kyle Dahms describe recent Euro (EUR) weakness versus Dollar (USD) after the Iran conflict and energy shock, but keep a recovery bias for EUR/USD.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note USD/JPY traded quietly between 159.28 and 159.82, closing at 159.68, with a firm underlying tone.

DBS Group Research’s Philip Wee expects the Reserve Bank of New Zealand to keep policy on hold at its April 8 meeting, looking through energy-driven inflation. He notes Governor Anna Breman’s conditional hawkishness if inflation expectations de-anchor.

Eurozone Sentix Investor Confidence: -19.2 (April) vs previous -3.1

Eurozone HCOB Composite PMI above expectations (50.5) in March: Actual (50.7)

Eurozone HCOB Services PMI above forecasts (50.1) in March: Actual (50.2)

Germany HCOB Services PMI came in at 50.9 below forecasts (51.2) in March

Germany HCOB Composite PMI in line with expectations (51.9) in March

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report that GBP/USD briefly dipped to 1.3178 before rebounding to 1.3267 and closing at 1.3238, invalidating a prior downside-biased view.

The USD/JPY pair trades calmly around 160.00 during the European trading session on Tuesday. The pair trades broadly sideways amid uncertainty surrounding the ongoing war in the Middle East.

France HCOB Services PMI above forecasts (48.3) in March: Actual (48.8)

France HCOB Composite PMI came in at 48.8, above forecasts (48.3) in March

Italy HCOB Services PMI below forecasts (51) in March: Actual (48.8)

Brown Brothers Harriman’s (BBH) Elias Haddad expects Canada’s March labor force survey to show a modest job rebound, while the Bank of Canada (BoC) can use its benign inflation backdrop to look through the Oil shock.

The NZD/USD pair struggles to capitalize on the previous day's modest gains and trades with a negative bias around the 0.5700 mark during the early European session on Tuesday.

The Pound (GBP) trades higher against the Japanese Yen (JPY) for the second consecutive day on Tuesday. Bulls have pushed the pair above the top of last week’s trading range, at the 211.50 area, reaching fresh April highs above 211.65 at the time of writing.

GBP/USD holds its position after registering over 0.25% gains in the previous day, trading around 1.3240 during the early European hours on Tuesday. The technical analysis of the daily chart indicates a persistent bearish bias, as the pair moves lower within the descending channel.

The Euro (EUR) is showing a moderate selling tone against the US Dollar (USD) as traders return from a long Easter weekend on Tuesday.

The USD/CHF pair gathers strength near 0.7990 during the early European trading hours on Tuesday. The Greenback edges higher against the Swiss Franc (CHF) on a widening monetary policy divergence between the US Federal Reserve (Fed) and the Swiss National Bank (SNB).

The AUD/USD pair trades in a tight range around 0.6900 during the early European trading session on Tuesday.

The Indian Rupee (INR) ticks up against the US Dollar (USD) in the opening trade on Tuesday.

The EUR/GBP cross trades on a flat note around 0.8720 during the early European session on Tuesday. Traders will take more cues from the Eurozone Retail Sales and German inflation data, which are due later this week.

AUD/JPY holds ground after posting gains in the previous trading day, hovering around 110.50 during the Asian hours on Tuesday. The currency cross remains in the positive territory as the Japanese Yen (JPY) weakens amid uncertainty surrounding the Bank of Japan’s (BoJ) policy stance.

The EUR/JPY cross holds steady near 184.35 during the early European session on Tuesday. However, the potential upside for the cross might be limited as ongoing tensions between the United States (US) and Iran could boost a safe-haven currency such as the Japanese Yen (JPY).

The EUR/USD pair ticks marginally lower around 1.1530 during the Asian trading session on Tuesday, but is broadly sideways, wobbling inside Monday’s trading range.

GBP/USD pares its recent gains from the previous day, trading around 1.3220 during the Asian hours on Tuesday. The pair depreciates as the US Dollar (USD) gains ground amid increased risk aversion, which could be attributed to the Middle East peace truce uncertainty.

The NZD/USD pair attracts some sellers to around 0.5700 during the Asian trading hours on Tuesday. The US Dollar (USD) strengthens against the New Zealand Dollar (NZD) as heightened uncertainty in the Middle East boosts demand for a safe-haven currency. 

USD/CAD edges higher after registering modest losses in the previous day, trading around 1.3930 during the Asian hours on Tuesday. The pair appreciates as the US Dollar (USD) gains ground amid increased risk aversion, which could be attributed to the Middle East peace truce uncertainty.