Resourceoriented currencies including the Canadian dollar and the Aussie consolidated gains on Tuesday, as a rally in commodity prices boosted their appeal, while the greenback held near multimonth lows on growing concerns about price pressures.
Soaring commodity prices have sent the cost of raw materials from copper to iron ore and lumber to record highs, raising concerns that inflation may not be as transitory as some believe with U.S. breakeven rates scaling multiyear peaks. MKTSGLOB
The Australian dollar steadied at 0.7827, hovering just below a twomonth high hit on Monday. The Canadian currency stabilised near a near fouryear high, while the New Zealand dollar perched comfortably at February highs.
But markets were broadly trading in narrow ranges by looming U.S. consumer price figures due on Wednesday, as traders worried that a big number might prompt the Fed to wind back monetary policy support sooner than expected.
The dollar might find some shortterm support tomorrow, if the consumer prices surprise notably on the upside, Commerzbank strategists said in a daily note.
Appearances later on Tuesday from U.S. Federal Reserve members John Williams, at 1430 GMT, and Lael Brainard, at 1600 GMT, will be parsed for clues as to central bank thinking.
Against a basket of its major rivals, the dollar steadied at 90.283, just above a Feb. 25 low of 90.03 hit in the previous session.
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