The US Dollar declined against most other currencies overnight, after lower than expected US inflation data dampened expectations for a Fed rate hike. EUR/USD opened at 1.0975 in Asia and rose to a high of 1.10, before declining back to 1.0985. USD/JPY briefly rose towards 104.00 in the early Asian session, but ran out of steam and eventually fell to 103.65. Meanwhile, the Pound declined from 1.2310 to 1.2275 against the Dollar.
The New Zealand Dollar was the best performing major currency in the Asian session, as NZD/USD rallied from 0.7190 to 0.7235. NZD/USD has cleared several important resistance levels, and the next one now lies at 0.7310. AUD/USD remains bid as well and rose to 0.7690 overnight. However, it continues to struggle ahead of the 0.77 level, which has proved to be a tough resistance level in the past few weeks.
Despite the overall USD weakness, precious metals failed to extend gains. Silver fell back to $17.60 in Asia after trading as high as $17.70 in yesterday's US session. Gold declined from $1264 to $1261.
The main events today are UK employment data and the Bank of Canada rate decision. The BoC is expected to keep rates unchanged.
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