FOREX TODAY: CALM MARKETS AHEAD OF THE FED AND US CPI; GOLD CONTINUES TO DECLINE

RBA Governor Bullock is scheduled to be in the Asian session, while the Australian Westpac Consumer Confidence report is due. Japan is going balance and wholesale inflation data. Later in the day, the US Consumer Price Index and UK employment figures come into focus. It's the first meeting of the FOMC for the year.

What you need know on Tuesday, December 12 is as follows:

The US inflation data is what will be most important on Tuesday. While predicted to slow from 3.2% to 3.1%, the Consumer Price Index (CPI) is predicted to register a 0.1% increase. The annual stay at 4%.

US CPI Preview: Predictions from ten major institutions, a slowdown in inflation.

The two-day meeting of the FOMC On Wednesday. New macroeconomic forecasts by Federal Reserve Chair Jerome Powell will be the main topics.

Due to some risk appetite, the US Dollar Index (DXY) only slightly increased on Monday, closing above 104.00. However, it was unable to breach the resistance level at 104.30. The dollar's surge versus the Japanese gains. The yields on US Treasury bonds barely changed.

TD Securities analyst on the US dollar:

The USD increased following the payrolls as predicted. We are concerned that the USD may continue to rise from its present levels in the near future as we approach the US CPI and year-end. Beyond that, we still see medium-term USD declines with sharp Fed cuts in H2 24.

The EUR/USD pair is consolidating at 1.0760 and is not moving before important events. The pair moved in the middle to calm trading. On Tuesday, the ZEW survey will be made public. The European Central Bank will meet on Thursday.

For the second day in a row, the USD/JPY increased and moved above 146.00, continuing its upward trend from below 142.00. One of the poorest performing currencies was the Japanese yen, as investors reduced their expectations of a Bank of Japan short-term policy shift. Japan is scheduled to disclose its September trade balance and November Producer Price Index.

GBP/USD is trading steadily near 1.2550, which is the 20-day Simple Moving Average (SMA). After getting close to 1.2600, the two withdrew. The unemployment rate for the three months ending in October is predicted to stay at 4.2% in the UK employment report, which is published this week. On Thursday, the Bank of England will make its monetary policy announcement.

At 0.6565, AUD/USD ended the day unchanged, hovering near the 20- and 200-day Simple Moving Averages. There is no obvious bias when the couple moves sideways. Michele Bullock, Governor of the Reserve Bank of Australia (RBA), will give a speech at a function. Also due are the National Australia Bank's Business report and the Westpac Consumer Confidence survey.

After breaking below $2,000, gold fell sharply, bottoming out at less than $1,980 before leveling down. The yellow metal is still struggling below the 20-day SMA and is under pressure. Oversold situations are indicated by technical indicators. The FOMC meeting and the US CPI are coming up, thus volatility is predicted to stay high. Bitcoin continued to decline from multi-month highs, reaching a low of about $40,000.