GBP/USD recovered back above $1.6200 after hitting Sep.16 low of $1.6160 on Tuesday. Break below the $1.6275 area was a strong bearish signal that confirmed a local peak at $1.6520. Fix below $1.6160 will open the way to $1.6060 (Sep.10 low). Don’t miss the UK manufacturing PMI on Wednesday at 8:30 GMT. The index is expected to have grown from 52.5 to 52.6 in August, but is still remains far below the yearly highs.
USD/JPY hit a new 6-year high of 109.85. Global demand remains elevated, so we expect our initial target of 110.60 to be hit on the current week. Short-term support lies at 109.10. Japan will release Q3 Tankan indices tonight – forecasts are downbeat, so USD/JPY could get more growth fuel.
AUD/USD recoiled down from the downtrend channel resistance in the $0.8770 area, but was getting support on the downside. The key support is at $0.8700. Watch whether Australian retail sales data and Chinese official PMI will surprise the market. Risk sentiment isn’t positive and we don’t recommend longs until the current downtrend is breached.
Recommended Content
Editors’ Picks
USD/JPY rebounds firmly to 150.00 on the expected BoJ rate hike
USD/JPY rallied to test 150.00, as the Japanese Yen tumbled amid a classic 'sell the fact' trading on the hawkish BoJ decision. The BoJ lifted the interest rate by 10 basis points (bps) from -0.1% to 0% for the first time since 2007 and abandoned the YCC framework.
AUD/USD drops toward 0.6500 after RBA's steady policy
AUD/USD is extending losses toward 0.6500 in Asian trading on Tuesday. The Aussie Dollar remains offered after the Reserve Bank of Australia extended the pause while markets digest the less hawkish policy statement ahead of Governor Bullock's press conference.
Gold price flat-lines above one-week low, awaits the crucial Fed decision on Wednesday
Gold price oscillates in a range and is influenced by a combination of diverging forces. Hawkish Fed expectations, elevated US bond yields and a bullish USD cap the upside. Geopolitical risks lend some support to the XAU/USD ahead of the key FOMC meeting.
Bitcoin price shows weakness, but new BTC whales have created solid support at $56,400
Bitcoin price downside momentum continues to gain strength, giving sidelined and late bulls a chance to buy the dip. The market remains focussed on the oncoming halving, expected to kick off the next bull cycle. For the meantime, however, spot BTC ETFs remain the main play in the market.
Lots of tension ahead of this week's Fed decision
Last week, we got a strong round of US economic data accompanied by hotter US inflation reads. The takeaway of course is that there might be a lot more pressure on the Fed to be looking to scale back its rate cut outlook at this week’s meeting.