Here is what you need to know on Tuesday, April 2:

Trading conditions are starting to normalizing on Tuesday with investors returning from the long Easter holiday. Germany's Destatis will release preliminary Consumer Price Index data for March and the US economic docket will feature Factory Orders and JOLTS Job Openings data for February. Several Federal Reserve (Fed) policymakers are scheduled to deliver speeches during the American trading hours as well.

Following a quiet European session on Monday, the US Dollar (USD) gathered strength against its rivals in the second half of the day, supported by rising US Treasury bond yields and the ISM Manufacturing PMI data, which came in better than expected. The USD Index rose 0.4% on the day and reached its highest level since November before going into a consolidation phase above 105.00 early Tuesday. Meanwhile, the 10-year US Treasury bond yield holds steady above 4.3% after rising 2.5% on Monday. 

EUR/USD broke below 1.0800 and lost nearly 0.5% on a daily basis on Monday. The pair stays on the back foot and trades in negative territory below 1.0750 in the European morning.

GBP/USD turned south in the American session on Monday and slumped to the 1.2550 area. The pair holds steady near that level on Tuesday.

The minutes of the Reserve Bank of Australia's (RBA) March meeting showed that board members did not consider the option for an interest rate rise. AUD/USD showed no reaction to this publication and was last seen consolidating Monday's losses slightly below 0.6500