Crude oil retraces the recent gains as investors adopt caution ahead of Fed decision. Investors await Chinese PMI data; seeking cues on world's leading crude importer’s economic scenario. Upward 10-year US Treasury yield could provide support in underpinning the US Dollar. Federal Reserve policy meeting and China's manufacturing data with caution, leading to a decline in crude oil prices.
The US Dollar encountersresistance as market expectations lean towards the likelihood of the US Federal Reserve maintaining interest rates at 5.5% in the upcoming Wednesday meeting. However, the US Dollar Index shows positive movement post lukewarm intraday performance during the Asian session, hovering around 106.70 as of now. The 10-year US Bondexperiencesa rebound, reaching 4.85% at the moment, providing support to the Greenback.