EUR/USD
The EUR/USD pair extends its upside to near 1.1615 during the Asian trading hours on Tuesday. The US Dollar (USD) weakens against the Euro (EUR) as weaker-than-expected US Manufacturing PMI data heaps pressure on the Federal Reserve (Fed) to cut interest rates later this month.
GBP/USD
GBP/USD soured on Monday, starting off the December trading window declining around one-quarter of one percent, pushing back down from a key technical confluence region that will likely inspire further short selling behind the Pound Sterling (GBP) unless global flows into the US Dollar (USD) reverse course.
USD/JPY
The Japanese Yen (JPY) maintains its offered tone through the Asian session on Tuesday, though the supportive fundamental backdrop warrants some caution for aggressive bearish traders. Bank of Japan (BoJ) Governor Kazuo Ueda signaled on Monday that a December interest rate increase could be under consideration. This, along with intervention fears, helps limit deeper JPY losses.
AUD/USD
The AUD/USD pair attracts some dip-buyers during the Asian session on Tuesday and stalls the previous day’s modest pullback from a nearly three-week top. Spot prices currently trade around mid-0.6500s, up over 0.10% for the day, and seem poised to build on the recent goodish recovery move from the lowest level since August 22, touched last month.
NZD/USD
The NZD/USD pair ticks lower during the Asian session on Tuesday and moves further away from an over one-month peak, around mid-0.5700s, touched the previous day. Spot prices currently trade near the 0.5720 region, though the fundamental backdrop warrants some caution for bearish traders and before positioning for deeper losses.
USD/CAD
The USD/CAD pair clings to Monday’s recovery move to near 1.4010 during the Asian trading session on Tuesday. The Loonie pair bounced back on Monday as the US Dollar (USD) rebounded despite weak United States (US) ISM Manufacturing Purchasing Managers’ Index (PMI) data for November strengthened the case for another interest rate cut by the Federal Reserve (Fed) this year.
USD/CHF
The USD/CHF pair trades in negative territory near 0.8045 during the early European session on Tuesday. The prospect of a US interest rate cut in December weighs on the US Dollar (USD) against the Swiss Franc (CHF). Traders brace for the Swiss Consumer Price Index (CPI) inflation report on Wednesday, along with the US ADP Employment Change and US ISM Services Purchasing Managers Index (PMI) data.
CRUDE OIL
Oil prices held firm in early trading on Tuesday as market participants assessed risks stemming from Ukrainian drone strikes on Russian energy sites, mounting U.S.-Venezuela tensions and mixed expectations for U.S. fuel inventories.
Gold (XAU/USD) reverses an Asian session dip to sub-$4,200 levels and trades with modest losses just below the highest level since October 20, touched the previous day. The growing acceptance that the US Federal Reserve (Fed) will lower borrowing costs again fails to assist the US Dollar (USD) to capitalize on the overnight modest bounce from a two-week low. This, in turn, is seen as a key factor that continues to act as a tailwind for the non-yielding yellow metal.
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