Dollar erases gains to sit mixed across the board

Major currencies are now keeping little changed in general, with the dollar's slight advance from Asia Pacific trading all but gone now as it holds mixed across the board.

EUR/USD is back up to 1.1903 from 1.1883 earlier, hugging the figure level rather closely while USD/JPY continues to linger at the lows close to 109.30 after the earlier drop.

AUD/USD has also bounced back off the swing region support around 0.7592-96 as it continues to be defended close to 0.7600 but is facing resistance from its key hourly moving averages @ 0.7624-25 currently.

All in all, the market looks to be rather muted and indecisive (despite higher yields still) as we await US CPI data later in the day. The release is expected to show a notable bump in inflation but it owes much to base effect adjustments so there's that to consider.

Still, the reaction in Treasuries will be the one to watch as to whether or not the market will be satisfied with that to try and take a run at 1.75% in 10-year yields or we will see a sell the rumour, buy the fact reaction instead.

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