EUR/USD
EUR/USD trades around 1.1080 during the Asian session on Tuesday after pulling back from an eight-month high of 1.1087. This downside is attributed to the improved US Dollar amid risk aversion sentiment. However, the Greenback may struggle due to rising odds of a 25 basis point rate cut by the US Federal Reserve in September.
GBP/USD
The GBP/USD pair weakens near 1.2980, snapping the three-day winning streak during the early European session on Tuesday. The modest recovery of the Greenback drags the major pair lower.
USD/JPY
The Japanese Yen (JPY) declines against the US Dollar (USD) on Tuesday. However, the downside of the JPY could be restrained amid the rising possibility of another near-term interest rate hike. Japan’s economy grew at an annualized rate of 3.1% in the second quarter, significantly exceeding expectations and rebounding from a slowdown earlier in the year.
AUD/USD
The Australian Dollar (AUD) halts its winning streak against the US Dollar (USD) on Tuesday. However, the AUD/USD pair may appreciate following the release of the Reserve Bank of Australia’s (RBA) August meeting minutes, which suggest that the cash rate could remain steady for an extended period.
NZD/USD
The New Zealand Dollar (NZD) trades in positive territory for the third consecutive day on Tuesday. The People’s Bank of China (PBOC) decided to hold the one-year and five-year Loan Prime Rates (LPR) steady on Tuesday at 3.35% and 3.85%, respectively. Any development in the Chinese economy generally impacts Kiwi as China is New Zealand’s largest trading partner. Meanwhile, the risk-on sentiment in global markets and easing geopolitical risks in the Middle East continue to undermine the Greenback.
USD/CAD
The USD/CAD pair stages a modest recovery from the 1.3625 area, or over a one-month low touched during the Asian session on Tuesday and for now, seems to have snapped a two-day losing streak. Spot prices, however, remain below mid-1.3600s as traders seem reluctant to place aggressive bets ahead of the Canadian consumer inflation figures, due for release later today.
USD/CHF
USD/CHF continues to lose ground, trading around 0.8640 during the Asian session on Tuesday. The US Dollar (USD) continues to weaken following dovish comments from Federal Reserve (Fed) officials, raising bets for an interest rate cut by the central bank in September and undermining the USD/CHF pair.
CRUDE OIL
Oil prices edged lower on Tuesday as Israel accepted a proposal to tackle disagreements blocking a ceasefire deal in Gaza, helping ease worries about supply disruptions in the Middle East.
Gold price is keeping its range play intact at around $2,500 early Tuesday, within striking distance of the all-time highs at $2,510. Traders take a breather and refrain from placing fresh bets on the Gold price ahead of the Minutes of the US Federal Reserve July meeting and Chairman Jerome Powell’s speech later this week.
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