The US inflation report will be even more important for global markets. Low figures may put pressure on the greenback while higher inflation could weaken risky assets. However, this data will be released tomorrow.

Therefore, today's movement of the US dollar in Asia initially resembled a consolidation within a narrow range of 104.5-104.8. The greenback posted slight growth thanks to the Wall Street Journal.

Yesterday, the media reported that the US Federal Reserve was a pause in its tightening cycle at its next meeting on September 20. On the other hand, some policymakers are in favor of a rate hike now so that there can be a gradual reduction later.

With such conflicting trends, investors' appetite for riskier assets is waning, and markets turn to the US dollar. The currency rose to 104.7 against its G6 counterparts in Asian trading and continued to rise moderately.

The Chinese yuan also took a breather from the media news today. It traded fairly steady in the Asian trade after a sharp rise in the previous session. According to Reuters, Beijing has tightened control over massive US dollar purchases by domestic companies.

Amid some signs of economic recovery in China, the country's currency is still facing increasing depreciation pressure. Chinese authorities are expected to try to keep the yuan exchange rate stable until the Golden Week holiday, which begins on September 29.

China also urgently needs to restore confidence in the country's economy. For example, investors were comforted by the news that Country Garden, the country's largest private real estate developer, received approval from creditors to extend bond repayments by three years.

Nevertheless, the measures taken do not look like a complete cure for China's real estate sector. Thus, this contagious disease may emerge at any moment.

In the meantime, the US dollar is expected to remain strong. The greenback may also receive support from strong US economic data. If the Japanese yen is still waiting for support from economic statistics, the Australian dollar has already been supported by the policy of the Reserve Bank of Australia.

Currently, the aussie's movement depends entirely on external factors - China, Wall Street, and the greenback. Today, it seems that the last two were the most important - the stronger US dollar and falling risk sentiment.

As a result, the aussie/dollar pair showed high volatility today, moving down within the range of 0.6416-0.6442. The Australian currency closed Tuesday's Asian session in the bearish territory at 0.6425.

In the Asian session, the New Zealand dollar also slid. The currency was down from yesterday's high of 0.5934, which was reached on news of an improvement in China's bank lending situation. Increased demand in the Chinese market is expected to boost optimism among New Zealand's manufacturers.

In addition, tourist arrivals to New Zealand rose by nearly 60% in August compared to the same period last year. Tourism in New Zealand is an important sector of the national economy.

Meanwhile, stubborn inflation is still above 6%. This may force the Reserve Bank of New Zealand to raise interest rates. Against this backdrop, the New Zealand dollar has a chance to grow in the coming days. In early Tuesday trading, the kiwi fell within the range of 0.5900-0.5927 and closed the Asian session at 0.5905.


00:00 Intro
00:30 Stock exchange trading in Asia
01:38 USDX
02:51 Yuan
03:35 Country Garden developer
04:11 USD/JPY
04;41 Kazuo Ueda
05:22 AUD/USD
06:19 NZD/USD

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