Forex Today: US CPI data and the RBA meeting will be the salient events

The US Dollar (USD) added to Friday's advance amid the generalised prudence among market participants ahead of the publication of the US inflation data, while a potential Trump-Putin meeting also helped with the cautious environment.

Here's what to watch on Tuesday, August 12:

The US Dollar Index (DXY) extended its recovery past the 99.00 hurdle, although it retraced a big chunk of that advance later in the day. The Inflation Rate will grab all the attention, seconded by the NFIB Business Optimism Index and the API's weekly report on US crude oil inventories. In addition, the Fed's Barkin and Schmid are due to speak.

EUR/USD met extra selling pressure and deflated to three-day lows, returning to the area below the 1.1600 support on the back of extra USD buying. The ZEW's Economic Sentiment print for both Germany and the Euroland will be the top releases on the domestic calendar.

GBP/USD halted its multi-day recovery and traded with decent losses, coming at shouting distance from the 1.3400 zone. The always relevant UK labour market report will grab all the attention across the Channel.

USD/JPY kept its upside impulse in place on Monday, building on Friday's advance and reclaiming the area above the key 148.00 barrier. Next on tap in "The Land of the Rising Sun" will be the Producer Prices and the Reuters Tankan Index, both due on August 13.

AUD/USD maintained its bearish tone for the second consecutive day, although managing well to keep the trade above the 0.6500 milestone. The next key event in Oz will be the RBA's interest rate decision, seconded by the NBA Business Confidence gauge.

Finally, after seven consecutive daily drops, WTI prices appear to have recovered, with traders closely monitoring geopolitical events in the wake of the extension of the US-China trade agreement.

Gold retreated to multi-day lows, reversing two straight days of gains and approaching the $3,440 zone per troy ounce, where its interim 55-day SMA also sits. Silver prices followed suit amid the widespread caution, easing to the $37.50 region per ounce.