The US dollar faced correction on overnight trading on Tuesday as China reported the increase of 4.9 percent in its consumer price index as compared to analysts\u2019 expectations of 5.4 percent. The dollar index DXY which measure greenback\u2019s movement versus its six major rival currencies declined to 78.50 in overnight trading as compared to 78.602 on Monday\u2019s North American trading session.<\/p>\n
The Australian dollar also advanced 0.2 percent to 1.0039 against the US dollar on the positive news of less increase in Chin\u2019s CPI index.<\/p>\n
On the other hand analysts are expecting a rise of 0.6 percent in US retail sales for the month of January as compared to nil growth in the prior month. The surge in retail sales is expected on the basis of increase in core spending and food and energy prices.<\/p>\n
The Euro also rose to 1.3510 against the US dollar as compared to1.3484 on Monday despite the negative sentiments about euro zone\u2019s sovereign debt situation. \u00a0Investors were also uncertain about the future outlook of WestLB one of the Germany\u2019s major financial institutions however analysts believe that Germany\u2019s economy is the only factor which can provide support for the single currency. \u00a0Economists are expecting strong economic data for the quarter by Germany.<\/p>\n
The British Pound also gained against the US dollar to 1.6047 in overnight trading as compared 1.6036 on late Monday.<\/p>\n
However the greenback advanced to 83.46 versus the Japanese Yen in Asian trading session as compared to 83.26 on Monday\u2019s North American trading session despite the factor that Japanese central bank managed to kept the overnight call rate to very low level which is expected by most analysts.<\/p>\n