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Summary
The Australian dollar is stuck in a range for quite some time. While the RBA is not expected to move anytime soon, other events could shape the direction of the A$. China's fresh bout of growth ahead of the Party Congress could help the Australian dollar. On the other hand, worries about a potential bubble in Melbourne and Sydney weighs. And let's not forget about the US dollar. Donald Trump is always there to rock the greenback.
Watch full analysis: Europe Market Open: Some risk off trading in the wake of Q2
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AUD/USD stays deep in red near 0.7000 after Aussie GDP, China PMIs
AUD/USD struggles to capitalize on the previous day's bounce from an over three-week trough and remains heavy near 0.7000 in the Asian session on Wednesday. The pair shrugged off upbeat Q4 Australian GDP print and mixed Chinese PMI data. Rising Middle East geopolitical tensions continue to weigh on investors' sentiment, benefiting the US Dollar's safe-haven status at the expense of the higher-yielding Australian Dollar.
USD/JPY retraces to near 157.50 amid Japanese intervention fears
USD/JPY pulls back to near 157.50 in the Asian session on Wednesday as bulls turn cautious amid Japanese FX intervention fears following the recent rally to a nearly six-week high, reached Tuesday. Meanwhile, reduced bets for an immediate BoJ rate hike undermine the Japanese Yen, while the flight to safety benefits the US Dollar's status as a global reserve currency amid expectations for a less dovish Fed, keeping the downside limited for the pair.
Gold rebounds ahead of US ADP, will it last?
Gold finds renewed Asian bids and retests $5,230 early Wednesday after the heavy sell-off on Tuesday. The US Dollar stands tall amid escalating Middle East tensions and reduced dovish Fed expectations. Gold defends $5,000 or 50% Fibo level after facing rejection at the 78.6% Fibo resistance at $5,342 amid bullish RSI.
Ethereum: Whales step up buying as short positions contract
After holding firm heading into the last weekend, Ethereum whales have returned to action, pouncing on the volatility stemming from escalating military actions between the US and Iran.
Energy shock 2.0: Why rising Gas prices could hit the Euro Premium
Even without a confirmed, sustained disruption, the mere risk to a key global energy chokepoint is enough to inject a significant premium into European Gas markets. And for the Euro, that matters.
Here is what you need to know on Wednesday, March 4:
The US Dollar (USD) is drawing safe-haven support amid sharply escalating tensions in the Middle East, prompting renewed investor concern.