President Biden declared that fighting inflation is his top domestic priority and said he understands Americans' frustration over high prices.

The Washington Post reported that ''Biden used a speech from the White House to address an issue that has become a major political liability for him. At the same time, he sought to draw contrasts with his Republican critics, noting the economic policies he is pushing while arguing that Republicans have no viable plan on inflation.''

Biden said he was looking at the possibility to drop some of the tariffs imposed against Chinese imports in order to lower US consumer price inflation.

On Wednesday, the US will report the CPI data. It is expected to rise by 0.5% MoM in April and headline to rise by 0.3%, as food and energy prices eased,  analysts at ANZ Bank said.

 ''Inflation has probably peaked on a YoY basis, but monthly inflation trends remain stubbornly high and above rates consistent with 2%. Fed Chair Powell wants to reduce the excessive demand in the labour market by achieving a reduction in job openings without unemployment rising. Navigating that path will be challenging.''

The dollar has been choppy on Tuesday, fluctuating between modest gains as traders get set for Wednesday's big event in the US Consumer Price Index which could give clues on the likely path of the Federal Reserve's monetary policy.