Forex Today: USD consolidates overnight strong gains, Aussie tests 0.80 mark; UK CPI in focus

The US Dollar was seen consolidating overnight strong gains, supported by receding worries over N. Korea and Hurricane Irma, with most major currency pairs lacking any firm direction and holding within a narrow trading range. 

With the market digesting the UN's decision to impose fresh sanctions on N. Korea, a continuous unwinding of safe-haven bets, further reinforced by a strong recovery in the US Treasury bond yields, remained supportive for the greenback's recovery move. 

Main topics in Asia

North Korea slapped with tougher UN sanctions
United Nations has slapped North Korea with tougher sanction though a unanimous [14-0] vote. 

USD/JPY consolidates overnight strong gains, stuck in a range below mid-109.00s
The USD/JPY pair was seen consolidating previous session's strong up-surge and oscillated in a 20-25 pips narrow band between the 109.30-55 region.

Gold retreats further, holds weaker around $1325 level
Gold extended its profit taking slide from its highest level in over a year and traded with mild negative bias through early Asian session on Tuesday.

The AUD/USD pair extended its pull-back from Friday's 28-month highs and challenged the key 0.80 psychological mark following the release of Australian NAB Business Confidence Index. 

Australian business conditions climbed to its highest since early 2008 in August
The National Australia Bank's survey of more than 400 firms showed its index of business conditions firmed 1 point to +15 in August, triple its long-run average of +5 and the highest since early 2008. Meanwhile, Australia's business confidence index fell to 5 in August vs. 12 in July.

AUD/USD on offers for second straight session, 0.80 handle at risk
The AUD/USD pair remained under some selling pressure for the second consecutive session and moved on the brink of breaking below the key 0.80 psychological mark during Asian session on Tuesday.

Meanwhile, the British Pound gained some fresh traction during Asian session after the UK Parliament passed the EU Withdrawal Bill by 326 to 290 votes.  

UK PM May wins vote on the Brexit bill timetable
UK PM May has won a vote on Brexit bill timetable and the Parliament has passed a motion limiting scrutiny of the bill to 8 days.

Key Focus ahead

The market focus is likely to return to fundamentals, with the release of latest UK inflation figures later during the European trading session. 

GBP/USD attempts a move back towards 1.32 handle, UK CPI in focus
The GBP/USD pair caught some fresh bids during Asian session on Tuesday and recovered part of previous session's sharp pullback from over 1-month highs.

With the only scheduled release of JOLTS job openings data, there aren't any major market moving economic data due for release from the US. Hence, broader market risk sentiment would continue to act as an exclusive driver in the FX market on Tuesday.

EUR/USD - At the mercy of risk sentiment, keep an eye on US inflation expectations
The retreat from Friday's high of 1.2092 in EUR/USD was extended to a low of 1.1948 yesterday as calm in the Korean Peninsula and the uptick in the Chinese PPI lifted the risky assets and higher yielding currencies like the US dollar. The currency pair clocked a low of 1.1946 in Asia.

OECD - ultra easy monetary policy has not had intended effects
The Organization for Economic Co-operation and Development [OECD] believes the ultra easy monetary policy has not has intended effects.