EUR/USD is extending the rebound from weekly lows above 0.9900, helped by ECB Chief Lagarde’s comments. The US dollar loses further ground amid a better risk profile and falling Treasury yields. Focus shifts to US ISM Manufacturing PMI and Fed decision.
The GBP/USD pair is aiming to extend its recovery above the immediate hurdle of 1.1517 after a sheer rebound from 1.1460 in the early European session. The cable has been underpinned as the risk-on impulse has rebounded firmly.
USD/JPY pares intraday losses, the first in three days, around 148.40-45 during early Tuesday morning in Europe. The yen pair dropped notably during the initial Asian session amid headlines from Japan, as well as due to the US dollar’s retreat and sluggish Treasury bond yields. However, the cautious mood ahead of the key US PMI and Wednesday’s all-important Federal Open Market Committee (FOMC) challenges the bears of late.
The AUD/USD has witnessed a steep fall to near 0.6420 pair as the Reserve Bank of Australia (RBA) has hiked its Official Cash Rate (OCR) by 25 basis points (bps) for the second time. The decision has remained in line with the projections and the Official Cash Rate (OCR) has increased to 2.85%. RBA Governor Philip Lower has preferred a less-hawkish policy approach to sustain economic prospects in accordance with the primary objective of brining price stability.
The NZD/USD pair has attempted a breakout after displaying back-and-forth moves in a 0.5803-0.5820 range in the early Tokyo session. The asset remained sideways from the late New York session as investors were awaiting the release of the Caixin Manufacturing PMI data for making an informed decision.
USD/CAD prints the first intraday loss in three as sellers attack 1.3600 early Tuesday.
The US dollar is appreciating for the third consecutive day against the Swiss franc. The pair has extended its rebound from last week’s lows at 0.9840 to levels beyond parity, with the market focusing on the Fed’s monetary policy meeting, due later this week.
Oil prices rose on Tuesday, paring losses from the previous session, as a weaker U.S. dollar offset widening COVID-19 curbs in China that have stoked fears of slowing fuel demand in the world’s second-largest oil consumer.
Gold price bounces off five-week-old support line amid pullback in DXY, yields. Mixed concerns over Fed, sluggish session allow XAU/USD traders to brace for FOMC. Upbeat performance of Chinese equities adds strength to the recovery moves.
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