The dollar eased on Tuesday after rallying overnight as strong...

The dollar eased on Tuesday after rallying overnight as strong U.S. economic data reinforced expectations that the Federal reserve will hike interest rates again in May, while investors awaited data from China that will highlight the extent of the recovery of the world's second biggest economy.

The dollar index =USD , which measures the currency against six major rivals, fell 0.039% to 102.05, after rising 0.5% overnight.

Data on Monday showed confidence among U.S. single-family homebuilders improved for a fourth straight month in April, while manufacturing activity in New York state increased for the first time in five months.

"The dollar can remain sensitive to the strength, or not, of the economic data as the Fed likely nears the end of their tightening cycle," said Kristina Clifton, an economist at Commonwealth Bank of Australia.

Markets are pricing in a 91% chance of the Fed raising interest rates by 25 basis points at its next meeting in May, CME FedWatch tool showed, with traders expecting rate cuts towards the end of the year.

Investor focus will be on China's first quarter GDP data due later in the day to asses how swiftly the country's economy has recovered after it ended strict COVID curbs in December. Economic growth is expected to have gathered pace from the pandemic slump, although headwinds persist and the outlook is expected to be a bumpy affair.

The euro EUR=EBS was down 0.01% at $1.0925, easing away from the one-year high of $1.10755 it touched last week.

The Japanese yen JPY=EBS strengthened 0.09% to 134.36 per dollar, hovering around the one-month peak of 134.57 it touched on Monday. Sterling GBP= was last trading at $1.2375, up 0.01% on the day.

The kiwi NZD=D3 rose 0.10% to $0.619. The Australian dollar AUD=D3 tacked on 0.01% at $0.670 as traders awaited minutes of the last Reserve Bank of Australia meeting, when the central bank paused its run of rate hikes to assess the impact of past increases.

Saxo strategists said if the minutes highlight interest rates could rise again, the Aussie could push higher, especially as the market has priced no hikes are on the table.

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	Currency bid prices at 0116 GMT 

 Description	  RIC		 Last		   U.S. Close  Pct Change	 YTD Pct	 High Bid	Low Bid 
											  Previous				   Change				  
											  Session											
 Euro/Dollar	   EUR=EBS	$1.0925		$1.0928	 -0.02%		 +1.97%	  +1.0929	 +1.0922 
 Dollar/Yen		JPY=EBS	134.4800	   134.4400	-0.03%		 +2.41%	  +134.4850   +134.2800 
 Euro/Yen		 																			 
 Dollar/Swiss	  CHF=EBS	0.8984		 0.8989	  -0.06%		 -2.84%	  +0.8987	 +0.8981 
 Sterling/Dollar   GBP=D3	 1.2371		 1.2378	  -0.02%		 +2.34%	  +1.2377	 +1.2368 
 Dollar/Canadian   CAD=D3	 1.3395		 1.3391	  +0.02%		 -1.15%	  +1.3396	 +1.3391 
 Aussie/Dollar	 AUD=D3	 0.6700		 0.6701	  -0.01%		 -1.70%	  +0.6704	 +0.6698 
 NZ				NZD=D3	 0.6183		 0.6182	  +0.06%		 -2.59%	  +0.6189	 +0.6181 
 Dollar/Dollar																				   

All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX

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World FX rates	https://tmsnrt.rs/2RBWI5E 

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