EUR/USD
EUR/USD extends its losses for the second consecutive day, trading around 1.1560 during the Asian hours on Tuesday. The pair depreciates as the US Dollar gains ground following traders’ caution, driven by the latest global trade developments and shifting expectations for monetary policy.
GBP/USD
The GBP/USD pair trades on a flat note near 1.3280 during the Asian trading hours on Tuesday. Nonetheless, rising odds of Federal Reserve rate cuts could weigh on the US Dollar against the Cable. Investors will keep an eye on the US ISM Services Purchasing Managers Index data, which is due later on Tuesday.
USD/JPY
The Japanese Yen (JPY) stalls its intraday retracement slide from a nearly two-week high touched against a broadly rebounding US Dollar (USD) during the Asian session on Tuesday. The June Bank of Japan (BoJ) meeting Minutes reaffirmed market bets for an imminent interest rate hike by the year-end. Moreover, an upward revision of Japan’s Services PMI turns out to be another factor acting as a tailwind for the JPY. However, concerns that domestic political uncertainty could complicate the BoJ’s policy normalization path hold back the JPY bulls from placing fresh bets.
AUD/USD
The Australian Dollar (AUD) loses ground for the second successive day despite the release of improved S&P Purchasing Managers’ Index (PMI) data on Tuesday. The AUD/USD pair depreciates as the US Dollar (USD) remains steady, driven by the latest global trade developments and shifting expectations for monetary policy. The US ISM Services Purchasing Managers Index (PMI) will take center stage later in the North American session.
NZD/USD
The NZD/USD pair trades in negative territory near 0.5900 during the Asian trading hours on Tuesday. The New Zealand Dollar (NZD) remains weak against the US Dollar (USD) despite the upbeat Chinese economic data. The attention will shift to the US ISM Services Purchasing Managers Index (PMI), which will be published later on Tuesday.
USD/CAD
The USD/CAD pair trades with mild losses around 1.3775 during the early Asian session on Tuesday. Weaker-than-expected US July employment data and the resignation of a Federal Reserve Governor weigh on the US Dollar (USD) against the Canadian Dollar (CAD). The US ISM Services Purchasing Managers Index (PMI) will take center stage later on Tuesday.
USD/CHF
The USD/CHF pair trades in positive territory around 0.8090 during the early European session on Tuesday. The Swiss Franc (CHF) softens against the Greenback after US President Donald Trump hit Switzerland with a shock 39% export tariff. However, rising September Federal Reserve (Fed) rate cut bets might cap the upside for the pair. The US July ISM Services Purchasing Managers Index (PMI) data will be in the spotlight later on Tuesday.
CRUDE OIL
Oil prices moved little in Asian trade on Tuesday, steadying from a sharp tumble in recent sessions as markets fretted over increased production and deteriorating demand amid increased global economic headwinds.
Gold price remains below a one-week high amid mixed fundamental cues. A modest USD strength and a positive risk tone cap the safe-haven commodity. Rising September Fed rate cut bets should act as a tailwind for the XAU/USD pair.
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