In opinion of FX Strategists at UOB Group, EUR/USD could still slip back to the 1.1530 region while below 1.1655.
FX Strategists at UOB Group noted Cable is still seen within the 1.3460/1.3680 band for the time being.
Focus remains on key resistance at 112.23/50 as USD/JPY recovers off the 110.80 August high. Karen Jones, Team Head FICC Technical Analysis Research at Commerzbank, expects the pair to struggle initially at the aforementioned resistance but with an eventual break opening up the 114.55 October 2018 peak.
AUD/USD sellers attack a short-term support line, standing on slippery grounds near 0.7265, down 0.34% intraday, during early Wednesday.
In doing so, the Aussie pair extends the previous day’s pullback from the 200-SMA to refresh the daily low, not to forget marking the first loss in five days.
NZD/USD refreshes intraday top to 0.6980 following a 20-pip upside in a reaction to the Reserve Bank of New Zealand’s (RBNZ) rate hike decision during early Wednesday. The kiwi pair previously dropped to 0.6945 while snapping the four-day uptrend.
USD/CAD consolidates recent losses around the monthly low, sidelined near 1.2580 during Wednesday’s Asian session. The loonie pair dropped during the last four consecutive days to print the one-month bottom the previous day despite the US dollar strength as Canada’s key export item, crude oil, refreshed multi-month high.
The appreciative move in the greenback keeps USD/CHF on the higher side. The US Dollar Index (DXY), which measures the performance of the greenback against the basket of six major currencies, rises above 94.00 with 0.14% gains. Investors await US Job data for a hint on the timing of US Fed policy tightening. Fed already hinted that tapering could begin as soon as November.
Crude oil extends the previous session’s upside momentum on Wednesday. The prices recover from the intraday low to trade near the session’s high. At the time of writing, WTI is trading at $79.28, up 0.44% for the day.
Gold struggled to capitalize on the previous day’s modest bounce, instead met with some fresh supply on Wednesday and dropped back closer to the $1,750 level heading into the European session. This marked the second successive day of a negative move and was sponsored by the continuous surge in the US Treasury bond yields, which tends to drive flows away from the non-yielding yellow metal.