The dollar gained in Asia on Tuesday in a busy regional data day that highlighted some weaker than expected figures on trade in New Zealand and Australia and industrial output in Japan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.08% to 101.22.
In Japan, provisional industrial production slumped 0.8% month-on-month in January, compared with a 0.3% increase seen and retail sales rose a higher than expected 1.0%, with an 0.9% rise expected. USD/JPY fell 0.10% to 112.59 after the figures with the focus more on a speech by President Donald Trump later in the day to a joint-session of the U.S. Congress that could touch on trade policies as well as tax and spending plans.
In Australia, private sector credit gained 0.2%, below the 0.5% hike expected, while the current account for the fourth quarter came in at a deficit of A$3.9 billion, wider than the A$3.6 billion gap expected. AUD/USD dipped 0.01% to 0.7672.
Overnight, the U.S. dollar reversed earlier losses against a slew of major currencies on Monday, as optimism surrounding a March interest rate hike increased.
The dollar bounced off session lows, after Dallas Fed President Robert Kaplan speech in Oklahoma on Monday reinvigorated hopes of a march interest hike.
Mr. Kaplan reiterated his view that a rate hike should come sooner rather than later in order to curb rising inflation.
According to Investing.com’s Fed Rate Monitor Tool 33% of traders expect the Fed to raise interest rates at its next meeting in March compared to only 26% of traders a day earlier.
The sharp turnaround in the greenback comes ahead of an eagerly awaited address by President Donald Trump to Congress on Tuesday.