EUR/USD
EUR/USD retraces its recent gains from the previous session, trading around 1.0810 during the early Tuesday. A review of the daily chart shows that the pair tests the upper boundary to return to the descending channel pattern which could reinforce a bearish bias for the pair.
GBP/USD
GBP/USD meets with a fresh supply on Tuesday and seems vulnerable to sliding further. Bets for smaller Fed rate cuts revive the USD demand and exert pressure on the pair. The technical setup favors bears and supports prospects for a further depreciating move.
USD/JPY
The Japanese Yen (JPY) strengthened a bit against its American counterpart during the Asian session on Tuesday and moved away from a nearly three-month low touched the previous day. An unexpected fall in Japan’s unemployment rate during September pointed to tighter labor market conditions, which could fuel consumer spending and demand-driven inflation. Adding to this, remarks by Japan’s Finance Minister Katsunobu Kato revived fears of a possible government intervention and offer support to the JPY. This, along with subdued US Dollar (USD) price action, exerts some downward pressure on the USD/JPY pair.
AUD/USD
The Australian Dollar (AUD) extends its decline against the US Dollar (USD) for the third consecutive session on Tuesday. Traders are now focused on Australia’s third-quarter Consumer Price Index (CPI) data, due for release on Wednesday, as they seek further insights into the Reserve Bank of Australia’s (RBA) potential monetary policy direction.
NZD/USD
The NZD/USD pair steadies near 0.5980 during the Asian session on Tuesday after two days of losses. However, downside risks for the New Zealand Dollar (NZD) remain as the Reserve Bank of New Zealand (RBNZ) is expected to deliver another 50-basis-point rate cut in its final policy meeting of the year in November, with markets even considering the possibility of a 75-basis-point cut.
USD/CAD
USD/CAD holds its position near 1.3890 during the Asian trading hours on Tuesday, close to its three-month high of 1.3908, recorded on Monday. The commodity-linked Canadian Dollar (CAD) faces challenges due to lower Oil prices as Canada is the largest crude exporter to the United States (US).
USD/CHF
USD/CHF remains subdued following the losses from the previous session, hovering around 0.8650 during Asian trading hours on Tuesday. This downside of the pair could be limited due to solid US Dollar (USD) amid higher Treasury yields.
CRUDE OIL
Oil prices were little changed on Tuesday after falling in the previous session as a U.S. plan to buy oil for the Strategic Petroleum Reserve (SPR) provided some support though wider concerns about weaker future demand growth exerted pressure.
Gold price catches fresh bids on Tuesday amid Middle East tensions and US election jitters. Bets for smaller Fed rate cuts remain supportive of elevated US bond yields and the USD. A positive risk tone might further contribute to capping the XAU/USD ahead of US data.
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