Cable slide was a boon for the dollar, which rallied back from a 2-1/2-week low against a basket of currencies initially driven by a growing view the Federal Reserve could pause its rate hike cycle sooner than previously thought. May on Monday postponed a parliamentary vote, which was due to take place on Tuesday, on her Brexit deal to seek more concessions. The move stoked more uncertainty as Britain now faces Brexit without a deal, a last-minute agreement or another EU referendum.
The dollar index, a measure of the greenback's strength versus a group of major peers, was a touch lower at 97.092 after rallying 0.76% on Monday. Overnight trade it had fallen to 96.364, its lowest since Nov. 22.
The 10-year Treasury note yield has dropped to a three-month low this week, with dovish comments from Fed officials and soft U.S. data further sharpening views on an imminent pause in the tightening cycle.
The Greenback dipped 0.25% to 113.02 yen after advancing 0.5 percent overnight.
The Australian dollar rose 0.1% to $0.7197 after slipping on Monday to a one-month low of $0.7170.
The People's Bank of China (PBOC) set the yuan reference rate at 6.8996 vs the previous day's close of 6.9099. The USD/CNH pair is currently trading at 6.91 - up 1.24 percent from the recent low of 6.8256. On the hourly chart, the relative strength index (RSI) has diverged in favor of the bears.
Gold is mildly bid in Asia, possibly tracking losses in the greenback. Investors continue to add bullish bets, risk reversals show. So, 200-day moving average (MA) of $1,255 could be put to test soon. Gold (XAU/USD) is currently trading at $1,245, having clocked a low of $1,242 earlier today.
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