The EUR/USD pair is displaying topsy-turvy moves around 1.0950 in the Asian session. The major currency pair is struggling to find direction as investors are awaiting the speech from Federal Reserve (Fed) chair Jerome Powell for further guidance on interest rates.
GBP/USD defends the previous day’s notable rebound, as well as the first daily gains in four, as it makes rounds to 1.2750 during early Wednesday morning in Asia. In doing so, the Cable pair portrays the typical pre-event anxiety ahead of the scheduled speeches from the top-tier central bankers at the European Central Bank (ECB) Forum in Sintara.
The USD/JPY pair comes under some selling pressure during the Asian session on Wednesday and erodes a part of the previous day’s gains to levels beyond the 144.00 mark, or a fresh high since November 2022. Spot prices currently trade around the 143.80 area, down nearly 0.20% for the day, though any meaningful corrective decline still seems elusive.
The AUD/USD pair meets with a fresh supply during the Asian session on Wednesday and dives to the 0.6620-0.6615 area, or over a three-week low in reaction to softer-than-expected Australian consumer inflation figures. The Australian Bureau of Statistics reported that the headline CPI decelerated to the 5.6% YoY rate in May from 6.8% in the previous month. This eases expectations for further interest rate hikes by the Reserve Bank of Australia (RBA), which, along with worries about the worsening US-China relations, weigh on the Australian Dollar (AUD). In fact, the Wall Street Journal, citing people familiar with the matter, reported on Tuesday that the Biden administration is considering new restrictions on exports of artificial intelligence chips to China.
The NZD/USD pair extends the overnight rejection slide from the 0.6200 mark and remains under some selling pressure through the Asian session on Wednesday. Spot prices drop to a fresh daily low in the last hour and currently trade around mid-0.6100s, down 0.15% for the day.
The USD/CAD pair builds on the previous day’s goodish rebound from the 1.3115 area, or its lowest level since September 2022 and gains positive traction for the second successive day on Wednesday. The momentum lifts spot prices to a fresh weekly high, above the 1.3200 mark during the Asian session and is sponsored by a combination of factors.
USD/CHF consolidates weekly losses ahead of the top-tier data/events as its prints mild gains around 0.8945, snapping a two-day losing streak, heading into Wednesday’s European session. In doing so, the Swiss Franc (CHF) pair also justifies the trader’s preference for the US Dollar amid cautious mood and hawkish Federal Reserve (Fed) bets.
Oil prices rose slightly in early Asian trade on Wednesday after data suggested that U.S. crude inventories shrank in the past week, although anticipation of more cues on global interest rates kept traders on edge.
Gold price attracts some buyers during the Asian session, albeit lacks follow-through. Bets for more rate hikes by the Federal Reserve underpin the US Dollar and cap gains. Traders now look forward to Fed Chair Jerome Powell’s comments for a fresh impetus.
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