Futures on S&P 500 fall 0.25% from Asian gains

Keep an eye on Wednesday's Australian Inflation Data for new hints about RBA.

USD trades at 0.7200. This is after the Asian recovery momentum has slowed down and it will not be able to continue into the European open.

As markets turn cautious due to resurgent US Dollar demand, the latest drop in the aussie was reflected in the 0.25% fall in S&P 500 futures. These futures were modestly up during Asian trading.

There are reports of Beijing, the Chinese capital, being locked down due to the rapid increase in coronavirus cases. Deaths in Shanghai are on the rise, which is threatening optimism and the opening of new markets. The market sentiment is being impacted by concerns about China's growth and the Chinese covid supply chain lockdowns. This has reactivated the dollar's safe-haven status.

Global growth worries are also a concern despite Fed's aggressive tightening of expectations. This keeps the greenback in check. Investors prefer to hold the US currency above the Durable Good and CB Consumer confidence data.

As the Aussie bulls remain cautious, Wednesday's quarterly Australian inflation release will keep them in check. "The annual rate is expected at 4.6% in the first quarter, an increase from 3.5% in the fourth quarter 2021. FXStreet Chief Analyst Valeria Bednarik stated that the RBA's Trimmed Mean Core CPI is expected to be 3.4%. This is much higher than the 2.6% previously and well above the Reserve Bank of Australia target for the first time since over a decade. For the RBA to take its next policy decision, it will need to have access to inflation data.