EUR/USD is heading towards 0.9900, refreshing 20-year lows. Investors remain cautious, anticipating a contraction in Germany’s manufacturing sector, which will strengthen the odds of a recession. The US dollar finds fresh demand amid risk-aversion ahead of PMIs.
GBP/USD is resuming the downside towards 1.1700 amid broad risk-aversion and renewed US dollar buying. GBP bulls need an upside surprise in the UK Preliminary business PMIs after surging CPI and soft confidence last week. US PMIs eyed as well.
USD/JPY takes offers to renew intraday low around 137.20, extending the pullback from a monthly high during Tuesday’s Asian session, as market sentiment dwindles amid mixed signals and a cautious mood ahead of the key data/events. In doing so, the yen pair prints the first daily loss in six even as Japan’s activity data for August appear downbeat.
The AUD/USD pair is falling sharply after failing to cross the immediate hurdle of 0.6900 in the Asian session. It seems that the pullback move by the aussie bulls from Monday’s low of 0.6862 is concluding sooner and a fresh downside impulsive wave will initiate. The asset has picked significant offers after the release of the downbeat Aussie Purchasing Managers Index (PMI) data.
NZD/USD has been on the backfoot and will enter the roll-over close to fresh six-day lows near 0.6150. The bears engaged after the People’s Bank of China trimmed lending rates was taken as only a minor positive due to the deepening troubles in the economy.
USD/CAD takes offers to renew intraday low near 1.3030 during early Tuesday morning in Europe. In doing so, the Loonie pair retreats from a monthly high to snap a five-day uptrend.
The USD/CHF pair has shifted into an inventory accumulation phase around 0.9640 after witnessing a juggernaut rally near 0.9580 on Monday. On a broader note, the asset has displayed a seven-day winning streak after printing a fresh four-month low of 0.9371 on August 11. The major is expected to continue its winning streak after violating Monday’s high at 0.9659.
Oil rose on Tuesday as renewed concerns over tight supply dominated market sentiment after Saudi Arabia warned that the major oil producer could cut output to correct a recent oil price decline.
Gold price is in the green for the first time in seven days, as the bulls attempt a tepid recovery from three-week lows of $1,728 amid a broad retreat in the US dollar so far this Tuesday. Risk-off flows extend amid expectations of Germany confirming a recession sooner (than later).
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