Forex Today: USD, Kiwi firmer amid risk reset, UK wages, German ZEW in focus

Broad-based US dollar rebound was the main theme in Asia this Tuesday, despite a recovery in the risk sentiment amid a rebound in the Asian stocks and higher Treasury yields.  Amongst the Asia-pac currencies, the Kiwi jumped and tested the 0.66 handle following upbeat New Zealand headline inflation. The Aussie, however, traded on the back foot amid RBA´s currency jawboning and flat China CPI figures. The USD/JPY staged a comeback and regained 112 handle amid risk-on, as the safe-havens such as the Yen, gold and the CHF corrected yesterday´s rally.

Meanwhile, both the EUR and GBP traded on the defensive amid Italian politics and Brexit deal uncertainty, as oil prices look to extend the bounce amid looming US-Saudi geopolitical tensions.

Main topics in Asia

New Zealand CPI beats estimates, Kiwi lurches higher

RBA Minutes: Fall in the AUD good for economy, no strong case for near term rate move

China's CPI steadies at 0.7% m/m in September, meets estimates

Halting austerity in the UK could bring back 1940s-era tax levels - Reuters

RBNZ's Q3 core inflation remains unchanged at 1.7%

Japan's Aso: US and Japan have agreed officials can discuss currencies

Still one-in-four chance of a no-deal Brexit - Reuters poll

Oil prices seeking bullish rebound on supply constraints, WTI eyeing $72.00

Key Focus ahead

Markets look forward to an eventful EUR calendar, with the UK wage growth data likely to hog the limelight amid mounting Brexit jitters while the German ZEW survey will be also eyed for any impact from the German state elections and Italian budget woes.

Later in the day, the US JOLTS job openings, industrial production and NAHB Housing Market Index will offer some fresh impetus to the US dollar trades. The Kiwi trades will await the release of New Zealand´s fortnightly dairy auction results, which will be reported around 1400 GMT.

EUR/USD: Break above 1.16 remains elusive, defiant Italy approves expansionary fiscal policy

The EUR/USD may feel the pull of gravity in Europe as the Italy-German yield differential may rise in the EUR-negative manner, courtesy of Italy's expansionary fiscal policy.

GBP/USD struggling to maintain the course to 1.3200 with UK earnings expected to decline

Tuesday brings Average Earnings figures for the UK at 08:30 GMT and Sterling market participants are bracing for an expected contraction in the headline figures, with the q/y figure (not including bonuses) into August expected to print at 2.8%, a mild tick lower than the previous quarter's 2.9%.

Key US data coming up: IP, JOLTS and housing - Nomura

Analysts at Nomura offered a preview of the next key data scheduled for today from the US session.