EUR/USD
The EUR/USD pair trades in a tight range around 1.1570 during the Asian trading session on Wednesday. The major currency pair consolidates as the US Dollar wobbles, with investors awaiting the announcement of the Federal Reserve’s Chair, and Governor Adriana Kugler’s replacement, who resigned last week.
GBP/USD
The GBP/USD pair trades on a positive note near 1.3305 during the Asian trading hours on Wednesday. The Greenback softens against the Pound Sterling as traders await US President Donald Trump’s pick for a vacancy on the Federal Reserve’s Board of Governors.
USD/JPY
The Japanese Yen (JPY) edges higher against its American counterpart during the Asian session on Wednesday and stalls the previous day’s sharp retracement slide from a nearly two-week top. The Bank of Japan (BoJ) last week left the door open for an interest rate hike later this year, which, in turn, is seen as a key factor acting as a tailwind for the JPY. Furthermore, the lack of any US Dollar (USD) buying interest, amid bets that the Federal Reserve (Fed) will resume its rate-cutting cycle in September, contributes to capping the upside for the USD/JPY pair.
AUD/USD
The Australian Dollar (AUD) extends its gains for the second successive day, following the release of domestic economic data on Wednesday. The AUD/USD pair appreciates as the AUD receives support from improved risk appetite amid rising bets on an interest rate cut by the US Federal Reserve (Fed) in September.
NZD/USD
The NZD/USD pair edges higher to near 0.5910 during the early Asian session on Wednesday. The New Zealand Dollar (NZD) strengthens against the US Dollar (USD) after data shows New Zealand’s Unemployment Rate came in better than expected. The Federal Reserve (Fed) officials are scheduled to speak later on Wednesday, including Susan Collins, Lisa Cook and Mary Daly.
USD/CAD
The USD/CAD pair remains on the defensive through the Asian session on Wednesday and currently trades around the 1.3765 region, down 0.05% for the day.
The US Dollar (USD) continues with its struggle to attract any meaningful buyers amid the growing acceptance that the Federal Reserve (Fed) will resume its rate-cutting cycle in September. Apart from this, a modest recovery in Crude Oil prices, from the lowest level since late June, touched on Tuesday, underpins the commodity-linked Loonie and weighs on the USD/CAD pair.
USD/CHF
USD/CHF edges lower after two days of gains, trading around 0.8070 during the Asian hours on Wednesday. The pair depreciates as the US Dollar (USD) weakens due to prevailing dovish sentiment surrounding the US Federal Reserve (Fed) policy outlook. Traders will likely observe the speeches from the Federal Reserve (Fed) policymakers later in the day, including Susan Collins, Lisa Cook, and Mary Daly.
CRUDE OIL
Oil prices climbed on Wednesday, rebounding from a five-week low in the previous day, on concerns of supply disruptions after U.S. President Donald Trump’s threats of tariffs on India over its Russian crude purchases.
Gold price snaps a four-day winning streak to a two-week high set on Tuesday. A positive risk tone and a modest USD uptick undermine the precious metal. Rising Fed rate cut bets might cap the Greenback and support the commodity.
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