Forex Today: Dollar rebounds as markets turn cautious, cryptos, gold, oil all retreat

Here is what you need to know on Tuesday, May 4:

After another positive day, markets are cautious on Tuesday, sending the dollar up and everything else down. Fed Chair Powell said the recovery is patchy and supply problems seem to slow US growth. Cryptocurrencies, gold and oil are all struggling. 

The US dollar is gaining ground across the board, despite a slide in Treasury yields. Returns on 10-year bonds are around 1.61%. Jerome Powell, Chair of the Federal Reserve, poured cold water on the recovery and stressed that low-income people are still struggling to return to work. His colleague John Williams also said that the US economy has a long way to go. 

The US ISM Manufacturing Purchasing Managers' Index disappointed with 60.7 points, with comments showing that companies are struggling with higher prices and supply chain issues. Factory orders figures for March on the agenda. 

EUR/USD is changing hands closer to 1.20 as the EU is considering lifting some travel restrictions. GBP/USD is battling 1.39 ahead of Markit's final Manufacturing PMI for April. 

Gold is trading below $1,790 after rising toward $1,800 on Monday. WTI Crude Oil is trading around $64, below the highs. 

The Reserve Bank of Australia left its interest rate unchanged at 0.1% and said I would consider changes to its bond-buying scheme in its July meeting. AUD/USD is trading above 0.77, yet below the highs.

Vaccines: The US could approve jabbing 12 to 15-year-olds with the Pfizer/BioNTech vaccine, raising the chances to reach herd immunity. The pace of immunizations is slowing and America is under pressure to contribute excess inoculations to other countries. The greater New York area will take steps to return to normal. 

Indian Prime Minister Narendra Modi refuses to slap a lockdown despite a dire covid situation in his country. Concerns about variants emerging in the Asian giant are somewhat weighing on markets. 

Cryptocurrencies: Bitcoin is trading around $56,000 after falling to lower levels while Ehtereum is consolidating its gains above $3,300. XRP fell below $1.48.