EUR/USD
EUR/USD trades in positive territory, eyeing 1.0600 in the early European session on Tuesday. The pair cheers the market’s optimism over likely Chinese stimulus, which caps the US Dollar upside. However, gains could be limited by increased dovish bets surrounding the ECB.
GBP/USD
GBP/USD regains traction above 1.2750 in the European morning on Tuesday. The risk-sensitive pair capitalizes on a better mood, courtesy of China’s stimulus hope, and broad US Dollar softness. Traders could turn cautious heading toward Wednesday’s US inflation test.
USD/JPY
The Japanese Yen (JPY) seesaws between tepid gains/minor losses against its American counterpart heading into the European session on Tuesday amid wavering expectations that the Bank of Japan (BoJ) will hike rates in December. The near-term bias, meanwhile, seems tilted in favor of the JPY bulls in the wake of the Bank of Japan’s (BoJ) more hawkish stance. In fact, the BoJ remains on track for more interest rate hikes, while global major central banks, including the US Federal Reserve (Fed), are seen lowering borrowing costs further.
AUD/USD
The Australian Dollar (AUD) continues to fall as the Reserve Bank of Australia (RBA) decides to maintain the Official Cash Rate (OCR) at 4.35% in its final policy meeting this year. RBA Governor Michele Bullock, speaking at a press conference, explained the decision to maintain the interest rate at a 12-year high of 4.35% for the ninth consecutive meeting in December.
NZD/USD
NZD/USD retraces its recent gains, trading around 0.5830 during Asian hours on Tuesday. The New Zealand Dollar (NZD) remains subdued following China’s Trade Balance data for November. However, buyers of the Kiwi dollar welcomed the decision from New Zealand’s top trading partner, China, to implement a more proactive fiscal policy and moderately loose monetary policy next year.
USD/CAD
The USD/CAD pair touches a fresh high since April 2020 during the Asian session on Tuesday, though it lacks follow-through buying and remains below the 1.4200 round-figure mark. The near-term fundamental backdrop, meanwhile, seems tilted in favor of bullish traders and suggests that the path of least resistance for spot prices remains to the upside.
USD/CHF
The USD/CHF pair softens to around 0.8770 during the early European session on Tuesday. The uptick of the Swiss Franc (CHF) is bolstered by further turmoil in the Middle East, which boosts the safe-haven flows. The release of the US November Consumer Price Index (CPI) data and the Swiss National Bank (SNB) interest rate decision will be the highlights for this week.
CRUDE OIL
Oil prices slipped on Tuesday as concerns eased about the fallout from Syrian President Bashar al-Assad’s overthrow, but the market found support in China’s vow to ramp up policy stimulus, which could boost the top global crude buyer’s demand.
Gold price climbs back closer to a two-week high and draws support from a combination of factors. Geopolitical risks continue to benefit the safe-haven XAU/USD amid December Fed rate cut bets. The technical setup now seems tilted in favor of bulls and supports prospects for additional gains.
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