U.S. Dollar Rises on Interest Rate Outlook

The U.S. dollar recovered lost ground on Tuesday as trading desks returned to full strength and underlying trends for its continued rise reappeared, although it remains hemmed in to tight ranges by mixed economic data.

A surprising move by the Reserve Bank of Australia not to cut interest rates boosted the Aussie dollar, bucking the prevailing greenback rally.

That rally has stalled in the last month with disappointing U.S. economic data such as last week’s weak jobs report underscoring a weak first quarter. Still, expectations for a recovery are putting a floor under the dollar.