EUR/USD is seeing fresh selling pressure, battling 1.0700 in early Europe on Tuesday. The renewed upside in the US Dollar and a return of risk-off flows are exerting downward pressure on the pair. ECB and Fed speak are in focus.
GBP/USD reversed its direction and retreated to the 1.2350 area after reaching its highest level in nearly two months at 1.2430. The US Dollar rose during the American session helped by higher Treasury yields. The DXY rebounded and turned positive, rising above 105.00.
The USD/JPY pair struggles to capitalize on the previous day’s positive move and seesaws between tepid gains/minor losses during the Asian session on Tuesday. Spot prices currently trade just above the 150.00 psychological mark and draw support from some follow-through US Dollar (USD) buying.
AUD/USD hovers around 0.6490 during the Asian session ahead of the interest rate decision by the Reserve Bank of Australia (RBA) scheduled to be released later in the day at 03:30 GMT. The pair suffered losses in the previous session due to the upbeat US Treasury yields, which helped the US Dollar Index (DXY) to rebound from the two-month low, trading near 105.20. However, at the time of writing, the yield on 10-year US bond trades in the negative territory around 4.63%.
NZD/USD trades lower around 0.5950 during the Asian session on Tuesday, extending losses for the second straight session. On Monday, the US Dollar (USD) was initiated to recover recent losses on the back of improved US bond yields.
The USD/CAD pair attracts some buying for the second straight day on Tuesday and builds on the overnight goodish rebound from the 1.3630-1.3625 region, or a near three-week low. The momentum lifts spot prices back above the 1.3700 mark during the Asian session and is sponsored by a combination of factors.
The USD/CHF was seen mostly flat on Monday, with the pair trading around 0.8970. The pair’s price dynamics were set by rising US bond yields, which benefited the Greenback, allowing it to gain traction which limits the downside for the pair. For the rest of the session, no relevant data will be released for either the US or Switzerland.
Oil prices eased on Tuesday, giving up most of Monday’s gains as mixed economic data from the world’s second largest oil consumer China and winter demand worries offset the impact of Saudi Arabia and Russia extending output cuts.
Gold price remains under some selling pressure for the second successive day on Tuesday and maintains its offered tone, just above the monthly low heading into the European session.
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