EUR/USD reverses from the weekly top while posting the first daily loss in three around 1.0860. The Euro pair marks the trader’s positioning for the top-tier German and the US data.
GBP/USD trades lower around 1.2630 on the back of a recovery in the US Dollar (USD), which could be attributed to the improvement in US Treasury yields snapping a two-day losing streak. Investors await US economic data, seeking further clues on the Fed’s policy decision.
USD/JPY licks its wounds after posting the biggest daily loss in a week, defending the previous day’s the pullback from the yearly top ahead of the US data about inflation, employment and the growth conditions. With this, the Yen pair retreats from intraday high to around 145.90 amid early hours of Wednesday’s Tokyo open.
The AUD/USD pair recovers some lost ground near 0.6470 after retracing to the 0.6450 low during the early European session on Wednesday. The Australian Dollar (AUD) is under pressure after the monthly Consumer Price Index (CPI) revealed that inflation dropped to a 17-month low in July. This number might convince the Reserve Bank of Australia (RBA) to keep interest rates unchanged in the next policy meeting.
NZD/USD takes offers to refresh the intraday low near 0.5945 during early Wednesday morning in Europe. In doing so, the Kiwi pair justifies the downbeat New Zealand (NZ) housing data, as well as portrays the market’s cautious mood ahead of the top-tier US data.
USD/CAD consolidates the biggest daily loss in a month while posting mild gains around 1.3575 ahead of Wednesday’s European session. In doing so, the Loonie pair prints the first daily run-up, so far, despite upbeat prices of Canada’s main export item, namely the WTI crude oil. The reason could be linked to the US Dollar’s recovery ahead of the top-tier US data.
USD/CHF clings to mild gains around 0.8790 as it consolidates the biggest daily loss since late July, marked the previous day, amid the early hours of Wednesday’s European session.
It’s worth noting that the US Dollar’s positioning for top-tier data and the market’s reassessment of the previous dovish bias about the Federal Reserve (Fed) allowed the Swiss Franc (CHF) pair to print the first daily gains in three.
Oil prices extended gains on Wednesday after industry data showed a large draw in crude inventories in the U.S., the world’s biggest fuel consumer, and as concerns about a hurricane in the Gulf of Mexico kept investors on edge.
Gold price is challenging three-week highs near $1,940 in Wednesday’s trading so far but the further upside depends on the upcoming top-tier US ADP employment data, especially after the JOLTS Job Openings data disappointed by a wide margin on Tuesday.
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