The US dollar fell against most major rivals on Tuesday as trade tensions cooled and after important inflation data.

Earlier data showed US consumer prices rose 2.3% y/y in April, down from 2.4% in March, and below estimates of 2.4%.

US core prices, excluding food and energy, rose 2.8% in April, same as March and matching estimates.

US consumer prices rose 0.2% m/m in April, below estimates of a 0.3% rise, and compared to March's 0.1% contraction.

The US and China announced a massive cut in reciprocal tariffs for 90 days amid efforts to contain trade tensions and reach a resolution.

According to the temporary agreement, the US will cut tariffs from 145% to 30%, including a 20% tariff related to fentanyl, while China will cut tariffs from 125% to 10%.

In addition, Trump also reduced tariffs on small Chinese packages, worth less than $800, from 120% to 54%.

Otherwise, the dollar index fell 0.8% as of 20:23 GMT to 101, with a session-high at 101.7, and a low at 100.9.

Aussie

The Australian dollar rose 1.6% as of 21:11 GMT against its US counterpart to $0.6475.

Loonie

The Canadian dollar rose 0.3% against the US dollar as of 21:11 GMT to $0.7175.

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