EUR/USD
EUR/USD floats near 1.0920 during Asian trading hours on Wednesday. The pair encountered volatility on Tuesday, primarily driven by the release of February’s inflation data from Germany and the United States (US). While German figures matched expectations, US inflation numbers exceeded expectations.
GBP/USD
The GBP/USD pair struggles to capitalize on the previous day’s late rebound from levels below mid-1.2700s, or the weekly low and oscillates in a narrow trading band during the Asian session on Wednesday. Spot prices currently trade just below the 1.2800 mark, unchanged for the day as traders opt to wait on the sidelines ahead of important macro releases from the UK, including the monthly GDP print.
USD/JPY
USD/JPY stays under pressure below 147.50 in Asian trading on Wednesday. The Japanese Yen holds the rebound amid the country’s Union wage hike demand having met in full by most firms. Japan’s wage negotiations seem to revive March BoJ rate hike bets.
AUD/USD
AUD/USD consolidates above 0.6600 in the Asian session on Wednesday, as the US Dollar bulls take a breather. Despite the S&P/ASX 200 Index rising for the second consecutive day, tracking gains on Wall Street overnight, lower commodity prices could exert pressure on the Aussie Dollar.
NZD/USD
The NZD/USD pair hovers around the mid-0.6100s during the early Asian session on Wednesday. The rebound of the US Dollar (USD) and higher US Treasury bond yield exert some selling pressure on the pair. The pair remains at the mercy of the USD price dynamics and the broader risk sentiment amid the quiet day in terms of economic data on Wednesday. At press time, NZD/USD is trading at 0.6147, down 0.06% on the day.
USD/CAD
The USD/CAD pair posts modest gains below the 1.3500 mark during the early Asian session on Wednesday. The stronger-than-expected US inflation number weighs on market sentiment and provides some support for the pair. The US February Retail Sales will be the highlight for this week, which is projected to improve to 0.8% MoM. USD/CAD currently trades near 1.3492, adding 0.01% for the day.
USD/CHF
The USD/CHF pair remains confined in a narrow trading range of 0.8765-0.8780 during the Asian trading hours on Wednesday. The stronger-than-expected US CPI inflation data in February lift the US Dollar (USD). Nonetheless, the risk-averse environment might boost safe-haven demand and benefit the Swiss Franc (CHF). The pair currently trades near 0.8776, adding 0.02% on the day.
CRUDE OIL
Oil prices rose in Asian trade on Wednesday, buoyed by industry data showing an unexpected draw in U.S. inventories, while the OPEC also stuck to its forecast of strong demand growth in the coming years.
Gold price is licking its wounds near $2,160 after witnessing about 1% percent correction from near record highs of $2,195 on Tuesday. Gold sellers are catching a breath, as the US Dollar and the US Treasury bond yields pause their recovery momentum, fuelled by hotter-than-expected US CPI data.
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