Forex Today – Asian Session: Markets now focus on PMIs

The Dollar extended its recovery and pushed the USD Index (DXY) back to the 105.00 zone amid rising yields and in response to the hawkish tone of the FOMC Minutes.

Here's what you need to know on Thursday, May 23:

The USD Index (DXY) hit multi-day highs near the 105.00 barrier, supported by the Fed's long-term tightening talk. The Chicago Fed National Activity Index will be released on May 23, along with with the usual weekly initial jobless claims, new home sales, and manufacturing and advanced services PMIs for the month of May. Additionally, Raphael Bostic of the Atlanta Fed is scheduled to speak.

EUR/USD fell to five-day lows near the 1.0820 area, an area coincident with the interim 100-day SMA. On May 23, preliminary data on consumer confidence, prepared by the European Commission (EC), will be published before the manufacturing and services PMIs for May.

GBP/USD held on to daily gains on the back of the BoE's repricing of rate cuts in the wake of UK inflation data. Preliminary manufacturing and services PMIs will be released on May 23 ahead of Pill's BoE speech.

The rise in yields and the continuation of the dollar's rebound gave wings to USD/JPY, which flirted with the three-week high zone. On the national calendar, weekly foreign bond investment will be released on May 23, followed by Jibun Bank's manufacturing and advanced services PMIs.

The AUD/USD pair notably retreated to multi-session lows following the strengthening of the Dollar and the weak tone in the commodities space. Consumer inflation expectations will be released in Oz on May 23, followed by Judo Bank manufacturing and services PMIs.

WTI prices fell for the third consecutive session due to the persistent strength of the Dollar and expectations of a delay in interest rate cuts by the Fed.

Gold prices added to Tuesday's decline following hawkish FOMC Minutes, rising yields and dollar strength. Silver did the same and once again hit three-day lows in the area below $31.00