During the early Asian session on Wednesday, the EUR/USD struggled to maintain its recovery from a 16-month low and was trading around 1.1250.
GBP/USD is still under pressure around 1.3370, fading the early Asian recovery from the yearly low ahead of Wednesday’s London open. The pair appears to be struggling with Brexit headlines and mixed concerns. Traders on the other hand, remain sceptical ahead of a slew of US data/events set to be released later in the day, such as the GDP Second release and Core Price Index.
The USD/JPY is under pressure around 115.00, having fallen from four-year highs of 115.24 in early Asia. All eyes are on the US data flow and Fed minutes.
The AUD/USD pair reversed an Asian session drop to its lowest level since early October and was last seen hovering around the 0.7220 area. The AUD/USD pair saw some selling during the early part of Wednesday’s trading action, dropping to sub-0.7200 levels. For the second day in a row, the US dollar has maintained its consolidative price action despite falling US Treasury bond yields.
Following a quick drop to 0.6916 on the Reserve Bank of New Zealand (RBNZ) interest rate decision early Wednesday, the NZD/USD remains under pressure around 0.6930.
USD/CAD is heading back towards 1.2700, tracking the gains in the US dollar across the board, after finding strong bids near 1.2660. A slew of key US data, including durable goods, PCE inflation, and GDP, will also provide new signs of economic recovery, potentially fuelling Fed rate hike speculation.
The USD/CHF seesaws around 0.9340 on early Wednesday.
Traders added around 14.3K contracts to their open interest positions for the third day in a row, according to preliminary CME Group data for crude oil futures markets. The volume increased by around 285.5K contracts. U.S.A Crude oil inventories will be released today at 17:30 GMT.
During early on Wednesday, gold gained some positive traction and moved away from a near three-week low hit the day before. The XAU/USD was last seen trading just below the $1,800 round-figure mark in the European session, maintaining its bid tone. Traders are contemplating the next move ahead of critical US data as the GDP Second release, Core Price Index and Fed minutes.
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