EUR/USD
EUR/USD hovers around 1.0830 during the early European session on Tuesday after trimming its intraday gains. The pair grapples to recover the losses registered in the previous session. The significant level at 1.0850 may act as immediate resistance for the pair.
GBP/USD
The GBP/USD pair remains confined in a narrow trading range above the 1.2700 mark during the early European trading hours on Tuesday. Investors prefer to wait on the sidelines ahead of key events from the Fed and the BoE.
USD/JPY
The USD/JPY pair remains at the same levels oscillating in the 147.370 – 147.385 range. The Fed is expected to hold rates steady on Wednesday and investors will focus on comments from Fed Chairman Jerome Powell, after he indicated in December that the Fed is pivoting to a rate cutting cycle.
AUD/USD
On Monday’s session, the AUD/USD forged ahead with 0.50% gains to settle at 0.6610. Despite an uncertain broader market sentiment, the daily chart exhibits a neutral to bullish outlook as bears grapple for ground. In that sense, as markets await the Federal Reserve (Fed) decision on Wednesday, markets brace for key Australian data on Tuesday to palace their bets on the next Reserve Bank of Australia (RBA).
NZD/USD
The NZD/USD pair holds ground above the 0.6100 psychological mark despite the firmer US Dollar (USD) during the early Asian session on Tuesday. The positive news of additional stimulus measures in China boosted the sentiment surrounding the China-proxy New Zealand Dollar (NZD). However, traders might turn cautious ahead of the Federal Open Market Committee’s (FOMC) January meeting on Wednesday. The pair retreats from an intraday high of 0.6143. At press time, the pair is trading at 0.6132, losing 0.01% on the day.
USD/CAD
The USD/CAD pair remains under selling pressure during the early Asian trading hours on Tuesday. Canada’s Gross Domestic Product (GDP) for November will be due on Wednesday, which is forecast to expand by 0.1% MoM. The attention will shift to the Federal Open Market Committee (FOMC) meeting on Wednesday, with no change in rate expected. At press time, USD/CAD is trading at 1.3510, down 0.01% for the day.
USD/CHF
USD/CHF attempts to retrace its recent losses, inching higher around 0.8620 during the Asian session on Tuesday. However, the US Dollar (USD) has faced a challenge against the Swiss Franc (CHF) due to the decline in US Treasury yields. The release of an improved US balance sheet has supported prices for US Treasury bonds, which, in turn, puts downward pressure on US yields.
CRUDE OIL
Oil prices bounced back in early trade on Tuesday, following a more than 1% drop the previous session, as escalating geopolitical tensions in major producing region the Middle East fuelled supply concerns.
Gold price fails to capitalize on the previous day’s strength and oscilates in a narrow trading band on Tuesday. The precious metal remains below the $2,040-2,042 supply zone and well within a familiar trading band.
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