Solid US data allowed the dollar to..........>

DOLLAR: Solid US data allowed the dollar to recover yesterday alongside firmer

UST yields. USDJPY improved through Y111.50 to close above the 200-dma, while

the DXY rallied toward 97.20.

- Renewed risk appetite through Asia saw the dollar index quickly retrace gains,

touching pullback lows of 96.95. Narrow range trade continues with downside

focus on the 50% retracement level of 95.76-97.51 & 100-dma at 96.64/60. Bulls

need to recover the 97.30-50 area to stabilise the outlook.

- Yesterday's dollar rally witnessed a near $20 retracement in gold to print its

lowest level of the week at $1289.73. Recovery efforts have so far remained

shallow through Asia with the yellow metal held to a narrow $1291.25-1294.10

range. The 100-dma provides the key area of support at $1287.95.

- Oil futures pared some of yesterday's losses but still remain off recent

multi-month highs.

- Michigan Sentiment Index is the main highlight at 1400GMT. Expectations are

for it to fall slightly to 98.3 in April after rising to 98.5 in March.