EUR/USD
EUR/USD edges higher after registering losses in the previous two successive sessions, trading around 1.1620 during the Asian hours on Tuesday. The pair may further appreciate as the Euro (EUR) could receive support amid improving market sentiment ahead of the upcoming United States (US)-Russia meeting on Friday.
GBP/USD
GBP/USD keeps its range near 1.3450 in the European trading hours on Tuesday. The mixed UK labor data fails to have little impact on the Pound Sterling. Meanwhile, the US Dollar consolidates its recent recovery, bracing for the US CPI inflation data.
USD/JPY
The Japanese Yen (JPY) sticks to its negative bias for the third straight day against a broadly flat US Dollar (USD), allowing the USD/JPY pair to stand firm just below mid-148.00s, or over a one-week high touched during the Asian session on Tuesday. The domestic political uncertainty, along with the potential negative impact of higher US tariffs on the economy, suggests that the prospects for further policy normalization by the Bank of Japan (BoJ) could be delayed further. This, along with a positive risk tone, continues to undermine the safe-haven JPY.
AUD/USD
AUD/USD stays pressured at around 0.6500 in Tuesday’s Asian trading. The Aussie sees ‘sell the fact’ trading in a knee-jerk reaction to the RBA’s expected 25 bps interest rate cut to 3.6% in August. The RBA raised concerns about labor market conditions. Governor Bullock’s presser is underway for fresh policy cues.
NZD/USD
The NZD/USD pair gains ground to around 0.5940 during the early Asian session on Tuesday. The New Zealand Dollar (NZD) strengthens against the Greenback after US President Donald Trump extends the China tariff deadline by another 90 days. Traders will keep an eye on the US July Consumer Price Index (CPI) report, which is due later on Tuesday.
USD/CAD
USD/CAD stays silent after registering gains in the previous three consecutive days, trading around 1.3780 during the Asian hours on Tuesday. The pair may face challenges as the commodity-linked Canadian Dollar (CAD) receives support from improved crude Oil prices. It is important to note that Canada is the largest Oil exporter to the United States (US).
USD/CHF
The USD/CHF pair attracts some sellers during the Asian session on Tuesday and erodes a part of the previous day’s strong move higher to over a one-week top. Spot prices, however, manage to hold above the 0.8100 mark amid mixed fundamental cues, warranting some caution for aggressive bearish traders.
CRUDE OIL
Oil prices rose on Tuesday as the United States and China extended a pause on higher tariffs, easing concerns an escalation of their trade war would disrupt their economies and crimp fuel demand in the world’s two largest oil consumers.
Gold price regains positive traction following the overnight slump to a one-week trough. Rising Fed rate cut bets cap the recent USD move up and offer support to the commodity. A positive risk tone warrants caution for the XAU/USD bulls ahead of the US inflation data.
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