EUR/USD
EUR/USD is trading with mild gains above 1.1050 in the European morning on Wednesday. The pair is on the front foot, in the face of soft US PMI data-led US Dollar weakness. Risk-aversion, however, could cap the pair’s upside ahead of US JOLTS Job Openings data.
GBP/USD
GBP/USD is holding steady above 1.3100 in European trading on Wednesday. The pair struggles to capitalize on the US Dollar’s weakness amid a risk-averse market atmosphere. All eyes turn to the US jobs data after the ISM Manufacturing PMI miss.
USD/JPY
The Japanese Yen (JPY) continues to strengthen against the US Dollar (USD) following the release of the Jibun Bank Services PMI data on Wednesday. The index was revised to 53.7 in August from an initial estimate of 54.0. Although this marks the seventh consecutive month of expansion in the service sector, the latest figure remains unchanged from July.
AUD/USD
The Australian Dollar (AUD) extends its losses against the US Dollar (USD) following the release of the key economic data on Wednesday. Australia’s Gross Domestic Product (GDP) posted a 0.2% reading QoQ for the second quarter, up from the previous quarter’s 0.1% but falling short of the expected 0.3% readings. Additionally, China’s Services Purchasing Managers’ Index (PMI) fell from 52.1 in July to 51.6 in August, which is notable considering the close trade relationship between China and Australia.
NZD/USD
NZD/USD continues its losing streak for the fourth consecutive day, trading around 0.6180 during the Asian hours on Wednesday. The downside of the NZD/USD pair could be attributed to the cautious stance adopted by market participants ahead of key economic data due this week, including the ISM Services PMI and Nonfarm Payrolls (NFP). This data could shed light on the potential size of an expected rate cut by the Fed this month.
USD/CAD
The USD/CAD pair trades on a weaker note around 1.3545 during the early Asian session on Wednesday. The weaker-than-expected US ISM Purchasing Managers Index (PMI) drags the Greenback lower. The Bank of Canada (BoC) interest rate decision will be the highlight later on Wednesday, with a 25 basis points (bps) rate cut expected.
USD/CHF
The USD/CHF pair extends its upside amid the firmer US Dollar (USD) around 0.8525 during the early European trading hours on Tuesday. The Swiss inflation was softer than expected in August, but the economy grew stronger than estimated. Investors brace for the US ISM Manufacturing PMI data, which is due later on Tuesday.
CRUDE OIL
U.S. oil futures opened modestly higher with the Crude Oil WTI Futures crude oil futures trading about 0.3% higher at $70.32.
During a volatile Tuesday’s trading session, oil prices plummeted to their lowest levels since mid-December, with Brent Oil Futures falling 4.9% to close at $73.75 a barrel, and WTI crude futures dropping 4.4% to $70.34 a barrel.
GOLD
The Gold price bounces off the multi-day lows but remains below the $2,500 barrier amid the renewed bid bias in the US Dollar on Wednesday. However, the ongoing geopolitical risks and imminent Fed rate cuts might underpin the yellow metal in the near term.
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