EUR/USD
EUR/USD has erased gains to trade on the back foot below 1.0900 early Tuesday. The pair treads water amid a cautious market mood, as traders weigh the US political updates and China slowdown worries. The US Dollar remains subdued, in the absence of top-tier economic data.
GBP/USD
GBP/USD is dropping toward 1.2900, lacking firm direction in European trading on Tuesday. The US Dollar looks to stabilize after the early decline, weighing on the pair. Traders await mid-tier US housing data for fresh trading impetus.
USD/JPY
The Japanese Yen (JPY) extends its gains for the second successive session on Tuesday, which could be attributed to the increased risk aversion. Traders assess the interest rate decision by the Bank of Japan (BoJ) next week, where an interest rate hike might be on the table to support the JPY.
AUD/USD
The Australian Dollar (AUD) weakens for the seventh consecutive session on Tuesday, driven by a steep drop in energy and metals prices. Given Australia’s heavy reliance on commodity exports, the AUD is particularly sensitive to fluctuations in these assets.
NZD/USD
The NZD/USD pair trades in negative territory for the fourth consecutive day around 0.5975 during the early Asian trading hours on Tuesday. The rising expectation that the Reserve Bank of New Zealand (RBNZ) will cut interest rates sooner than later drags the Kiwi lower against the US Dollar (USD).
USD/CAD
The USD/CAD pair attracts some buyers for the fifth successive day on Tuesday and trades above mid-1.3700s during the Asian session, closer to a six-week peak touched the previous day.
USD/CHF
USD/CHF halts its three-day winning streak, trading around 0.8890 during the Asian session on Tuesday. The US Dollar (USD) faces pressure as expectations rise for a Federal Reserve (Fed) rate cut in September. Last week, Fed Chair Jerome Powell noted that the three US inflation readings this year “add somewhat to confidence” that inflation is on track to meet the Fed’s target sustainably, implying that interest rate cuts might be approaching.
CRUDE OIL
Oil prices steadied on Tuesday after falling for the past two sessions, as investors remained cautious amid expectations of plentiful supplies and weak demand, while brushing off the U.S. presidential campaign upheaval.
Gold price is making another attempt to reclaim $2,400 on a sustained basis, replicating the moves seen during Monday’s Asian trading. Gold price appears to be benefiting from a typical market caution and renewed China’s economic worries and ahead of key US earnings reports.
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