The U.S. dollar strengthened against the other major currencies in the Asian session on Tuesday, as traders expect the Federal Reserve to be the first major central bank to embark on the path of monetary policy normalization.

That said, Federal Reserve Chair Janet Yellen said last Friday an interest rate hike may well be warranted later this year but stressed that any increase in interest rates would be gradual.

With the Fed increasingly focusing on the jobs market in charting its monetary policy, the March jobs report for the U.S., set for release on Friday is largely awaited by the traders.

"With continued improvement in economic conditions, an increase in the target range for that rate may well be warranted later this year," Yellen said at San Francisco Fed conference.

Meanwhile, data from a business economics group, the National Association for Business Economics (NABE) said in its March report that it has boosted its outlook for U.S. economy. The NABE forecasts growth at 3.1 percent rate this year and 2.9 percent in 2016, compared to 2.4 percent growth last year.

U.S. personal income and Pending home sales increased more than expectation in February, separate data showed on Monday.

Monday, the U.S. dollar showed mixed trading against against its major rivals. While the U.S. dollar held steady against the euro and the Swiss franc, it fell against the pound. Against the yen, the U.S. dollar rose.

In the Asian trading today, the U.S. dollar rose to near 2-week highs of 120.35 against the yen, 0.7617 against the Australian dollar, 0.7471 against the NZ dollar and 1.2716 against the Canadian dollar, from yesterday's closing quotes of 120.05, 0.7652, 0.7489 and 1.2672, respectively. If the greenback extends its uptrend, it is likely to find resistance around 121.90 against the yen, 0.74 against the aussie and 0.72 against the kiwi and 1.28 against the loonie.

The greenback advanced to 8-day highs of 0.9707 against the Swiss franc and 1.0772 against the euro, from yesterday's closing value of 0.9665 and 1.0831, respectively. On the upside, 1.02 against the franc and 1.04 against the euro are seen as the next resistance levels for the greenback.

Against the pound, the greenback edged up to 1.4768 from yesterday's closing quote of 1.4809. The greenback is likely to find resistance around the 1.46 area.

Looking ahead, Eurozone unemployment rate for February and CPI for March are slated for release shortly.

In the New York session, Canada GDP for January, U.S. S&P Case Shiller home price index for January, Chicago PMI for March and U.S. consumer confidence index for March are set to be published.

At 7:55 am ET, U.S. Federal Reserve Bank of Richmond President Jeffrey Lacker is expected to speak on Economic outlook in Richmond.

Danièle Nouy, Chair of the ECB Supervisory Board, will deliver a speech before the European Parliament's Committee on Economic and Monetary Affairs on Brussels at 9:00 am ET. At the same time, U.S. Federal Reserve Bank of Cleveland President Loretta Mester moderates a policy session at a conference in Stone Mountain, Georgia.

At 3:00 pm ET, U.S. Federal Reserve Bank of Kansas City President Esther George is expected to speak on the U.S. economy in New York.

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