NEW YORK ( BBH) -- The U.S. dollar was trading with a firmer tone against most currencies ahead of December auto sales data that are likely to see a sales increase of 12.3 million vehicles. The euro continued Monday's uptrend but gains will likely be capped by bond-related supply and price action since the euro is trading near the upper end of its recent range near $1.3450. Sterling is the strongest performer in the G-10 vs. the dollar, which extended early session gains after the better-than-expected December PMI print. The five-day and 20-day are set to cross to the upside, which may be sign of further short-term gains. Meanwhile, the yen and Swiss franc consolidated recent gains vs. the dollar as risk appetite continues to gain momentum, reducing demand for safe-haven currencies. Elsewhere, the Australian dollar looks set for a period of corrective action, following Monday's losses, due to the concerns that the Queensland floods may impact exports and thus gross domestic product, potentially weighing on the outlook for rate hikes from the Reserve bank of Australia. Global bond markets were mixed. The most dramatic moves were in the U.K., where the 10-year gilts were up 9 basis points following the strong economic data.