EUR/USD
EUR/USD oscillates near 1.0850 in the early European session on Wednesday, flirting with two-week lows. The pair turns cautious ahead of preliminary Eurozone PMI data while the US Dollar faces fresh selling amid the USD/JPY slide. US PMIs eyed as well.
GBP/USD
GBP/USD remains under pressure below 1.2900 early Wednesday. Broad risk-aversion offsets the USD/JPY decline-driven US Dollar weakness, rendering negative for the pair. The focus now shifts to the UK and US S&P Global PMI readings.
USD/JPY
The Japanese Yen (JPY) extends its gains for the third consecutive session on Wednesday, likely due to a return of risk-off flows. The Bank of Japan (BoJ) is anticipated to raise interest rates at next week’s policy meeting, prompting short-sellers to exit their positions and providing support to the JPY.
AUD/USD
The Australian Dollar (AUD) continues its losing streak for the eighth consecutive day following the release of mixed data from Australia’s Judo Bank Purchasing Managers Index (PMI) on Wednesday. Moreover, sluggish economic activity in China has put additional selling pressure on the AUD. Concerns about the weak Chinese economy were heightened by an unexpected rate cut from the People’s Bank of China (PBoC) on Monday.
NZD/USD
The NZD/USD pair faces some selling pressure near 0.5945 during the early Asian session on Wednesday. The risk-off sentiment and modest rebound of the Greenback drag the pair lower to the lowest level since May 2. Traders will keep an eye on preliminary US S&P Global PMIs for June on Wednesday for fresh impetus.
USD/CAD
The USD/CAD pair extends a rally around 1.3785 during the early Asian session on Wednesday. The pair edges higher amid the risk-off mood, which boosts the Greenback broadly. Investors will closely monitor the Bank of Canada (BoC) interest rate decision later in the day, which is expected to cut rates again by 25 basis points (bps) to 4.5%.
USD/CHF
USD/CHF halts its four-day winning streak, trading around 0.8890 during the Asian session on Wednesday. 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 rebounded on Wednesday, snapping three straight sessions of decline, as falling U.S. crude inventories and growing supply risks from wildfires in Canada boosted prices.
Gold price is looking to build on the previous rebound above $2,400 in Asian trading on Wednesday, despite a buoyant tone seen around the US Dollar and the US Treasury bond yields. Gold traders now look forward to the global preliminary business PMI data for fresh trading impetus.
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