EUR/USD is trading under pressure below 1.0700 amid a cautious Asian trading on Tuesday. Bets that the ECB is done hiking rates act as a headwind for the shared currency while a subdued US Dollar price action could lend support to the pair.
The GBP/USD pair continues with its struggle to gain any meaningful traction and languishes near its lowest level since early June touched on Monday. Spot prices trade around the 1.2380-1.2375 region.
USD/JPY recovers from the losses registered on the previous day, trading higher around 147.70 during the Asian session on Tuesday. The pair is experiencing upward support ahead of the interest rate decisions from the US Federal Reserve (Fed) and the Bank of Japan (BoE).
AUD/USD continues to move sideways amid investors turn cautious ahead of the US Federal Reserve (Fed) policy decision. The spot price trades around 0.6430 during the Asian session on Tuesday.
The Reserve Bank of Australia (RBA) published its September monetary policy meeting minutes. The RBA did contemplate a 25 basis points rate hike, but ultimately decided to maintain the current interest rate. This decision was driven by the fact that recent economic data did not significantly change the economic outlook.
The NZD/USD pair posts modest gains and trades in positive territory for the second consecutive day during the early Asian session on Tuesday. The modest uptick in the Kiwi (NZD) is supported by a weaker US Dollar (USD) as the markets anticipate that the Federal Reserve (Fed) to maintain the interest rate unchanged at its meeting on Wednesday.
The USD/CAD continues to tip to the downside as the Loonie (CAD) gets pushed higher by rising oil prices.
Oil prices continue to chew through chart paper, with West Texas Intermediary (WTI) US crude oil marking a fresh high of $91/bbl in Monday trading.
The USD/CAD is testing into five-week lows as the US Dollar (USD) gives up ground against the commodity-supported CAD, but the midweek sees the Federal Reserve (Fed) landing with another rate call. Markets are broadly expecting the Federal Open Market Committee (FOMC) to hold steady with interest rates at 5%.
The USD/CHF pair trades sideways around 0.8970 during the early Asian trading hours on Tuesday. Meanwhile, the US Dollar Index (DXY), a measure of the value of USD against six other major currencies, faces some follow-through selling but still holds above 105.10. Markets prefer to wait on the sidelined ahead of the interest rate policy announcement from the Federal Reserve (Fed) and the Swiss National Bank (SNB) on Wednesday and Thursday, respectively.
Oil prices rose on Tuesday for the fourth consecutive session, as weak shale output in the U.S. spurred further concerns about a supply deficit stemming from extended production cuts by Saudi Arabia and Russia.
Gold price consolidates its recent gains above the $1,900 mark during the Asian session on Tuesday. Traders prefer to wait on the sidelines ahead of the major central banks’ monetary policy meeting.
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