Asian FX session sees rangebound trading with limited volatility

Currency markets experienced subdued price action during Tuesday's Asian trading session, with major pairs confined to tight ranges as traders adopted a wait-and-see approach. The lack of significant economic releases from the region contributed to the muted volatility, with most currency pairs trading within 20-30 pip ranges throughout the session. Market participants appeared reluctant to establish new positions ahead of key risk events later in the week, including the US employment report and various central bank communications. The dollar index remained relatively stable near recent levels, neither extending losses nor mounting a recovery from its vulnerable position. Asian currencies showed mixed performance, with the Japanese yen holding steady while commodity currencies like AUD and NZD saw minor fluctuations tied to overnight commodity price movements. The subdued conditions reflect typical pre-event positioning, suggesting traders are preserving capital for potentially more volatile sessions ahead.