Despite the market movement being slow on Tuesday, the US dollar has shown a positive increase in value.
This is better than the continuous depreciation of the currency last week.
Investors assessed the market sentiment as risky with the focus of the issue at this time being on the tariff war and also the tension in the Russia-Ukraine conflict negotiations.
The talks held in Saudi Arabia between US (US) and Russian officials are aimed at ending the Ukraine war, but Ukrainian President Volodymyr Zelenskyy was not invited to the event.
The Aussie dollar is still hovering at a 2-month high with a slight decline displayed in trading continuing into the European session yesterday after the decision of the central bank's policy meeting.
The Reserve Bank of Australia (RBA) at its latest meeting cut interest rates by 25 basis points to 4.10% as expected.
Next, attention will turn to the New Zealand central bank policy meeting in the Asian session this morning (Wednesday).
The Reserve Bank of New Zealand (RBNZ) has been more aggressive in easing its policy by cutting interest rates by 50 basis points from 4.25% to 3.75%.
The central bank also took a similar action at its October meeting last year in its policy easing plan.
The New Zealand dollar showed an initial reaction after the latest interest rate announcement with a significant price drop seen on the NZD/USD currency pair chart.
The Canadian dollar traded slowly as investors digested the Canadian inflation report published in the New York session yesterday.
Canadian annual inflation rose to 1.9% from 1.8%, still below the central bank's 2% target level that supports continued policy easing.
The pound is still trying to maintain a positive movement pattern after the UK jobs report was published yesterday, with the next focus on UK inflation data to be published in the European session today.
Investors will also be waiting for the FOMC meeting minutes report early Thursday morning to examine more details regarding the Federal Reserve's (Fed) monetary policy guidance.
