EUR/USD is rebounding toward 1.1100 early Europe on Tuesday. The pair recovers from the downbeat Eurozone and German PMIs-led weakness while a pause in the US Dollar rally also aids the EUR/USD upswing. Focus is on Germany’s IFO survey and US sentiment data.
GBP/USD is holding gains near 1.2850, struggling to gain the upside traction early Tuesday. The pair cheers a modest US Dollar pullback, courtesy of China’s stimulus optimism. Further upside appears elusive after dismal UK PMIs and ahead of the US data and key Fed meeting.
The USD/JPY pair oscillates in a narrow range between 141.20 and 141.60 heading into the European session on Tuesday. The major pair currently trades around 141.45, down 0.01% for the day. Market participants prefer to wait to be sidelined ahead of the Federal Reserve’s (Fed) and the Bank of Japan’s (BoJ) interest rate decisions later this week.
AUD/USD holds onto the week-start rebound from the lowest levels since July 12 to around 0.6740 amid the early hours of Tuesday’s Asian session. In doing so, the Aussie pair justifies its risk-barometer status, as well as cheers headlines suggesting more stimulus from China, while ignoring the firmer US Dollar and mixed data at home.
The NZD/USD pair rebounds nearly 35 pips from the Asian session low and turns positive for the second straight day on Tuesday. Spot prices currently trade around the 0.6210-0.6215 region, up 0.15% for the day, and draw support from a modest US Dollar (USD) weakness.
The USD/CAD pair remains on the defensive for the second successive day on Tuesday and hits a three-day low, around the 1.3150 region during the Asian session.
Crude Oil prices consolidate the recent strong gains to over a three-month high touched on Monday and remain well supported by hopes that more stimulus from China – the world’s largest oil importer – will boost fuel demand. Apart from this, expectations for tighter global supply act as a tailwind for the black liquid, which, in turn, is seen underpinning the commodity-linked Loonie and acting as a headwind for the USD/CAD pair.
The USD/CHF pair faces rejection near the 0.8700 mark and retreats a few pips from a nearly two-week high touched during the Asian session earlier this Tuesday. Spot prices currently trade around the 0.8685 region, down 0.10% for the day, and the modest intraday downtick is sponsored by a mildly softer tone surrounding the US Dollar (USD).
Oil prices rose slightly in Asian trade on Tuesday, sticking to three-month highs as signs of tighter supply and expectations of more Chinese stimulus helped offset uncertainty over an upcoming Federal Reserve meeting.
Gold price trades with modest gains during the Asian session on Tuesday. XAU/USD trades around the $1,960 mark, up 0.36% on the day. Investors await the FOMC meeting and Fed Powell’s press conference for further guidance for the entire year.
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