Trade to continue whipsawing markets, with potential light at the end of the tunnel

FXStreet Team FXStreet

Trade headlines are whipsawing markets and causing confusion. Joseph Trevisani and Yohay Elam break down the current state of affairs and find reasons for hope. However, the twists and turns may provide surprises and opportunities in both safe-haven currencies and safe-haven assets.

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FXStreet Team

FXStreet

Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

AUD/USD struggles below mid-0.7000s ahead of Aussie jobs data, Trump-Xi summit

AUD/USD consolidates near its lowest level since August 7, trading below mid-0.7000s during the Asian session on Thursday ahead of Australian jobs data and the Trump-Xi meeting. Meanwhile, Fed rate hike bets keep US bond yields elevated near multi-year highs. This, along with geopolitical risks, helps the US Dollar preserve overnight gains to a nearly two-month peak and caps the currency pair.

USD/JPY stands firm near mid-157.00s, close to two-week high

USD/JPY hovers around mid-157.00s in the Asian session on Wednesday, near two-week highs touched last Friday as the BoJ's dovish rate hike continues to undermine the Japanese Yen. Meanwhile, the US Dollar remains firm amid the Fed's hawkish stance, adding support to the pair, though JPY intervention fears cap further gains. Markets pay little heed to the completion of the round of US-Iran indirect talks ahead of Trump-Xi meeting.

Gold falls to weekly troughs below $4,300

Gold rapidly leaves behind two daily upticks in a row and comes under heightened downside pressure midweek. Indeed, the precious metal breaches below the $4,300 mark per troy ounce to reach weekly lows amid the marked recovery in the US Dollar and the generalised upbeat tone in the US money market.

Australia unemployment rate expected to remain unchanged at 4.5% in August

Australia will release the August monthly employment report on Thursday at 01:30 GMT. Ahead of the announcement, analysts expect the country to have added 20K new jobs in the month, while the Unemployment Rate is expected to remain steady at 4.5%. The Australian Bureau of Statistics (ABS) report is also expected to show that the Participation Rate stood at 66.9%, unchanged from the previous month.

Ethereum takes a breather at $2,700 as activity, leverage stays calm

Ethereum declines 3% below $2,700 on Wednesday, as the crypto market takes a breather from recent price surges. Open interest, which measures the total worth of unsettled contracts in a derivatives market, has remained calm in ETH terms since the late August short squeeze that pushed prices above $2,000.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.