The NZD/USD consolidates within the 0.5700-0.5760 for the second straight day, as the 20-day Simple Moving Average (SMA) at 0.5764 capped the pair’s advance towards the 0.58 figure. At the time of writing, the pair trades at 0.5739, virtually unchanged.
EUR/USD holds firm near the 1.1600 figure on Wednesday amid a scarce economic docket in both sides of the Atlantic as market participants await a delayed US Consumer Price Index (CPI) report, to be released on Friday.
West Texas Intermediate (WTI) Crude Oil edges higher on Wednesday, extending gains for the second consecutive session as traders react to a surprise draw in US inventories.
Gold price slides over 1.50% on Wednesday after plummeting more than 5% on Tuesday in its biggest daily loss in five years as traders brace for the release of the latest inflation report in the United States (US). At the time of writing, XAU/USD trades at $4,050 after reaching a high of $4,161.
The Euro (EUR) edges higher against the US Dollar (USD) on Wednesday, snapping a three-day losing streak as the Greenback loses momentum. At the time of writing, EUR/USD is trading around 1.1611, bouncing off the intraday low near 1.1576.
GBP/USD holds firm during the North American session on Wednesday following the latest inflation report in the United Kingdom, which triggered some weakness in the Pound Sterling (GBP), as expectations for further easing by the Bank of England (BoE) increased.
The high price reached the 100/200 hour MAs and found willing sellers. Oil prices are moving higher which is a positive for the CAD/negative for the USDCAD.
The GBP is the weakest of the major currencies after tamer CPI inflation data. The JPY is modestly higher vs the greenback to start the North American session
Gold (XAU/USD) is attempting to stabilize on Wednesday after a brutal selloff from record highs the previous day, finding some support as the US Dollar (USD) softens. At the time of writing, XAU/USD is trading around $4,040, down over 1.50% after briefly dipping to $4,004 earlier in the day.
The Nasdaq rallies back to the all-time high as traders keep betting on de-escalation between US and China. Key risks ahead include the US CPI on Friday and the APEC Summit next week.
The Euro jumped to intra-week highs above 0.8700 earlier on Wednesday, buoyed by the Pound's weakness following softer-than-expected UK inflation data.
The US Dollar (USD) is currently the best performing G10 currency both on a one-month view and in the month to date, Rabobank's FX analyst Jane Foley reports.
US Dollar (USD) is likely to trade between 7.1180 and 7.1310. In the longer run, USD could drop to 7.1130; a clear break below this level will shift the focus to 7.1000, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
There is scope for US Dollar (USD) to test 152.25 before the risk of a pullback increases. In the longer run, outlook is mixed; USD could trade between 150.00 and 153.00 for now, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
New Zealand Dollar (NZD) is likely to trade in a range of 0.5720/0.5760. In the longer run, the outlook for NZD is neutral now, and it is likely to trade in a range between 0.5685 and 0.5770, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Australian Dollar (AUD) is likely to trade in a range between 0.6470 and 0.6515. In the longer run, for the time being, AUD is expected to trade in a sideways range of 0.6445/0.6555, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Gold bounced up after reaching the target of a Double Top pattern, at $4,005 on Tuesday, but upside attempts have been halted way below previous support, at $4,185, which leaves the immediate bearish trend intact and the $4,000 support area at a short distance.The announcement that US President Trum
Euro (EUR) could test 1.1580; a sustained drop below this level is unlikely. In the longer run, downward momentum is building; EUR is likely to trade with a downward bias, potentially retesting the 1.1540 level, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
The US Dollar (USD) has continued to strengthen this week, as US credit market concerns appear to have now entirely left the FX market. The very large gold correction yesterday potentially added some support to the greenback, ING's FX analyst Francesco Pesole notes.
EUR/USD is testing the 1.160 support, but as discussed above, we aren’t very confident the dollar can rally much further from here without data inputs, ING's FX analyst Francesco Pesole notes.
EUR/JPY dips slightly after posting strong gains in the previous session, trading around 176.10 during the European hours on Wednesday. The technical analysis of the daily chart indicates a prevailing bullish bias as the currency cross remains within the ascending channel pattern.
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