After hanging on a kind of cliff for the past few hours, EUR/USD has pulled back from its intraday high (1.2970) to levels back around the 1.2920 mark in late North American trade.
The AUD/USD is under sharp pressure as stocks and commodities weigh on the pair, having slid to as low as 1.0404 as price retreats from a key Fibonacci retracement level at 1.0450 (50%, 1.0517/1.0385 decline).
Gold managed to rebound from yesterday’s steep losses to end 0.1% higher at $1,766.40 per ounce Tuesday, supported by positive fundamental data out of the U.S.
“Gold pared gains, however, as the dollar regained some ground and after a U.S. central banker, widely seen as a hawk, criticized the latest round of monetary easing and shook up commodities markets,” reports Claudia Assis and Sara Sjolin at MarketWatch.
Ms. Assis and Ms. Sjolin go on to explain that “A lower dollar is a positive force for dollar-denominated commodities as it makes them less expensive for holders of other currencies, broadening their appeal.”
As Bruce Clark, analyst at IFR Markets notes: “the currency market is vulnerable to being swept up in negative sentiment now that the central banks have all played their hands and there is little else to drive prices.”