EUR/USD
EUR/USD remains subdued for the second successive session, trading around 1.1660 during the Asian hours on Tuesday. The pair struggles as the US Dollar receives support from positive signals toward a possible resolution of the Ukraine-Russia war, following the Trump-Zelenskyy summit on Tuesday.
GBP/USD
The GBP/USD pair trades on a softer note near 1.3500 during the early European session on Tuesday. The US Dollar posts modest gains against the Pound Sterling as traders pared bets on a rate cut at the US Federal Reserve September 16-17 meeting. The UK July Consumer Price Index inflation report will take center stage later on Wednesday.
USD/JPY
The Japanese Yen (JPY) recovers slightly from a four-day trough touched against a flattish US Dollar (USD) during the Asian session on Tuesday, though it lacks bullish conviction. The growing acceptance that the Bank of Japan (BoJ) will stick to its policy normalization path and hike interest rates by the year-end acts as a tailwind for the JPY. Apart from this, the cautious market mood is seen as another factor underpinning the JPY’s safe-haven status and fails to assist the USD/JPY pair to capitalize on its modest intraday uptick to levels beyond the 148.00 mark.
AUD/USD
The Australian Dollar (AUD) extends its losses for the second consecutive session on Tuesday. The AUD/USD pair depreciates despite an improved Westpac Consumer Confidence, which surged 5.7% in August to 98.5, following a 0.6% increase in July. The sentiment has reached a high since February 2022, as the Reserve Bank of Australia (RBA) has delivered rate cuts totaling 75 basis points since January.
NZD/USD
The NZD/USD pair gains ground to near 0.5925 during the early Asian session on Tuesday. The US Dollar (USD) softens against the New Zealand Dollar (NZD) as a slew of US economic data keeps the case for a September Federal Reserve (Fed) interest rate cut intact. Traders will closely monitor the Reserve Bank of New Zealand (RBNZ) interest rate decision and the FOMC Minutes later on Wednesday.
USD/CAD
The USD/CAD pair climbs back above the 1.3800 mark during the Asian session on Tuesday, though it lacks bullish conviction and remains below an over two-week high touched the previous day. Moreover, a combination of diverging forces might hold back traders from positioning for any meaningful appreciating move for spot prices.
USD/CHF
The USD/CHF pair tumbles to near 0.8070 during the early European session on Tuesday. However, the potential downside for the pair might be limited amid optimism of a truce in the conflict between Russia and Ukraine, with US President Donald Trump planning a summit meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskiy very soon.
CRUDE OIL
Oil prices slipped in early Asian trade on Tuesday as market participants contemplated planned three-way talks among Russia, Ukraine and the U.S. to end the war in Ukraine, which could lead to an end to sanctions on Russian crude.
Gold gains some positive traction during the Asian session, though the uptick lacks follow-through. Reduced bets for a 50 bps Fed rate cut in September underpin the USD and cap the XAU/USD pair. Hopes for a Russia-Ukraine peace deal might contribute to keeping a lid on the precious metal.
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