EUR/USD is trading sideways near 1.0800 in the European morning on Wednesday. The pair is benefiting from the retreating US Dollar, although a cautious risk tone limits the optimism ahead of a busy EU and US economic docket. US ADP is the key event risk.
The GBP/USD pair snaps the two-day losing streak and holds above the 1.2600 support level during the Asian trading hours on Wednesday. The modest decline of the US Dollar creates a tailwind for the pair. GBP/USD trades near 1.2607, gaining 0.11% on the day.
USD/JPY is trading better bid above 147.00 in the Asian session on Wednesday, finding support from a modest uptick in the US Treasury bond yields and dovish comments from Bank of Japan (BoJ) Deputy Governor Ryozo Himino.
The AUD/USD pair climbs to 0.6575 during the early Asian trading hours on Wednesday. The pair edges higher following the Australian growth numbers. However, the rebound of the US Dollar (USD) and risk-off mood might cap the further upside of AUD/USD.
NZD/USD is staging a solid comeback. Heading toward 0.6200 in the Asian session on Wednesday. The pair is witnessing a relief rally after two days of sharp correction from five-month highs of 0.6223.
The USD/CAD pair snaps the two-day winning streak during the early European session on Wednesday. The US data on Tuesday revealed that the ISM Services PMI came in at 52.7 in November from 51.8 in the previous reading, better than the market expectation of 52.0. Meanwhile, the US JOLTS labor data on Tuesday was worse than expected. The US job openings data, as measured by the Job Openings and Labour Turnover Survey (JOLTS) fell by 617,000 to 8.733M in October. This report indicated that US labor market conditions are loosening further.
The USD/CHF is continuing to climb for a second trading day, with the US Dollar (USD) getting propped up by broad-market risk-off flows rather than any specific weakness in the Swiss Franc (CHF), which is up over 3% against the USD since early November.
Oil prices were mixed in Asian trade on Wednesday, after posting four sessions’ worth of losses, as markets weighed the effectiveness of OPEC+ cuts on supplies and worries of a worsening demand outlook in China.
Gold price is making a minor recovery attempt near $2,020 early Wednesday, replicating the move seen in Tuesday’s Asian trading. Risk sentiment appears to be in a tepid spot, underpinning the Gold price alongside a pause in the US Dollar upswing.
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