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The dollar is keeping a touch lower after having seen Treasury yields retreated yesterday, with the US CPI report not enough to stoke bond sellers' appetite. The strong demand from the 30-year notes auction also added to the mix to keep yields pinned down.

Eventually, one of these reports is going to be the one to do the trick but perhaps for now, it is too early as these are seen merely building the base in which the Fed may start to feel more optimistic about economic prospects in the months ahead.

That may only be seen via data later in Q2 or early Q3 as the upbeat non-farm payrolls, ISM services report, producer prices, and now consumer inflation data have failed to jolt yields into the next leg higher.

That only reaffirms a stronger conviction for a cap at 1.75% for 10-year yields - for now.

Looking to FX, this could see dollar gains ease up as we approach some consolidation phase. EUR/USD may be looking towards testing resistance at 1.1990-00 again now and the thing to watch in the pair may be a surprise turn in the EU's vaccine rollout.

Things have been gathering pace there in the past week and if that keeps up, the euro may find some short-term reprieve as it covers the worries from March.

USD/JPY is another one to watch to see if it can keep below 109.00, which could signal some added pressure on the dollar in general.

Meanwhile, AUD/USD looks to be breaking higher as it jumps above the trendline resistance from the 25 February and 18 March highs, now looking towards testing the 7 April high @ 0.7677 before potentially angling towards 0.7700 next at least.

CAD/JPY is also one that is interesting as the pair looks to be pulling back little by little, with the 23.6 retracement level @ 86.60 helping to limit downside for now.

The 23-24 March lows near 86.00 may offer better risk-reward for macro traders in that regard but depending on yields direction, the scope of any pullback may vary.

Elsewhere, EUR/GBP is also contesting the 0.8700 level again but sellers are holding for now. Even though cable looks to be holding a bounce of its 100-day moving average to push towards 1.3800 for now, that owes more to dollar selling.

If EUR/GBP keeps poised for a further correction, that is likely to limit pound strength across the board and in turn bolster euro sentiment as well.

In commodities, despite all that is happening, gold is still failing to find much reprieve as the modest bounce yesterday didn't amount to anything technically.

The short-term resistance at $1,755 remains key and with investor appetite still lacking, it is tough to see things turn around for the yellow metal for now - at least in any meaningful way. Silver continues to look more attractive if one considers dip buying.

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