EUR/USD makes rounds to 1.0890-85 as the bulls take a breather amid a light calendar, as well as mildly offbeat sentiment, during early Tuesday. The Euro pair’s latest retreat could also be linked to the rebound in the US Treasury bond yields.
The GBP/USD pair has attempted a recovery after a marginal correction to near 1.2400 in the Tokyo session. The Cable resisted further correction as hawkish Federal Reserve (Fed) bets inspired by upbeat oil prices have receded significantly.
USD/JPY slides to 132.20 while extending the week-start reversal from the highest level in a fortnight. That said, the Yen pair’s latest losses could be linked to the downbeat US Treasury bond yields, as well as softer data, not to forget upbeat comments from Japan Prime Minister Fumio Kishida.
The AUD/USD pair has slipped below 0.6770 as the Reserve Bank of Australia (RBA) has broken the policy-tightening spell after hiking rates straight 10 times. RBA Governor Philip Lowe has kept the Official Cash Rate (OCR) unchanged at 3.6%. The street was divided over the interest rate decision as Australia’s monthly Consumer Price Index (CPI) indicator has already conveyed that inflation has softened quickly in the past two months to 6.8% from the peak of 8.4% registered in December. It seems that RBA Governor Philip Lowe is highly optimistic about further softening in Australian inflation.
The NZD/USD pair is hovering near 0.6300 in the Asian session. The Kiwi asset is expected to deliver a break above the 0.6300 mark as the interest rate decision by the Reserve Bank of New Zealand (RBNZ) on Wednesday is expected to scrap the Federal Reserve (Fed)-RBNZ policy divergence ahead.
USD/CAD reverses intraday losses as it grinds higher past 1.3400 heading into Tuesday’s European session, near 1.3440 by the press time. With this, the Loonie pair ignores firmer prices of the WTI crude oil, Canada’s key export item, while pausing a six-day downward trajectory near the lowest levels since mid-February.
The USD/CHF pair is displaying topsy-turvy moves in a narrow range around the immediate mark of 0.9120 in the Asian session. The Swiss Franc asset is expected to witness sheer selling pressure after surrendering the 0.9100 mark. The downside bias for USD/CHF is backed by rising expectations for a pause in the policy-tightening spell by the Federal Reserve (Fed).
Oil prices rose slightly in early Asian trade on Tuesday as markets weighed a surprise output cut by the OPEC+ against fears of slowing economic growth after a barrage of weak manufacturing indicators from across the globe.
Gold price has sensed a cushion of around $1,980.00 after a gradual correction from above $1,990.00 in the Asian session. The precious metal has picked support as the odds for a steady monetary policy by the Federal Reserve (Fed) have soared.
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