Meanwhile, the risk-sensitive Australian dollar rallied against a backdrop of gains for U.S. equity futures and a more hawkish Reserve Bank. Investors will closely watch consumer price inflation data on Tuesday for additional clues on the policy outlook. Market pricing anticipates the Fed funds rate peaking just above 5.1% by July then falling by the end of the year to 4.8%. "From where I stand today we need further, significant rate hikes," German central bank chief Joachim Nagel told the newspaper Boersen-Zeitung on Tuesday. His colleague Isabel Schnabel said it is not yet clear that the ECB rate hikes so far would bring inflation back to 2%.

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