US Dollar Weakens Against Majors

The greenback edged lower against its major rivals on Tuesday morning in Asia as Asia-pacific equity sentiment weakened ahead of the U.S. earning season.

Uncertainty about the upcoming earnings season weighed on sentiment, with aluminum giant Alcoa (AA) due to release its quarterly results after the close of trading later today.

The US dollar reached 5-day lows of 1.3129 against the euro and 0.9207 against the Swiss franc.

With trend-line support levels signaling further bearishness, the dollar may find downside target levels at 0.9160 against the franc and 1.3190/1.32 against the European shared currency.

The greenback also drifted weaker against the pound in early Asian deals, falling to a 5-day low of 1.6130, down from Monday's close of 1.6118.

The cable is expected to show some consolidation around the 1.6130/50 area in the near-term. However, the pair may extend uptrend toward the key 1.63 level in the medium-term.

The greenback reversed its one-month bullish trend against the yen, falling to a 4-day low of 87.25, down from 87.80 hit late New York Monday.

Although the present direction seems to have a 'dollar-bearish', the trend may alter as soon as the newly elected Japanese Prime Minister Shinzo Abe adopts his pre-election pledge of unlimited quantitative easing policies.

Traders look forward to important macro-economic data for direction, with the Swiss unemployment for December, German trade data and factory orders-both for November, euro-zone consumer confidence for December, retail sales and unemployment for November being expected to influence the market in the European session.

The U.S. consumer credit for November is the lone data to watch in the North American session, however, the key focus would be towards the earnings result of Alcoa which is due out after the close of the market.