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Forex Today: Australian GDP takes centre stage alongside US JOLTs

The US Dollar (USD) regained sudden buying interest and advanced to multi-day highs on Tuesday as investors continued to factor in a couple of interest rate cuts by the Federal Reserve in the latter part of the year.

Here's what to watch on Wednesday, September 3:

The US Dollar Index (DXY) snapped a five-day negative streak on Tuesday, propped up by a decent rebound in US yields across the curve. The usual weekly MBA Mortgage Applications are due prior to the JOLTs Job Openings, Factory Orders, the Fed Beige Book, and the API’s weekly report on US crude oil inventories. In addition, the Fed’s Musalem and Kashkari are due to speak.

EUR/USD came under fresh downside pressure and retreated to the 1.1610 region, the lowest level in the last four days. The final HCOB Services PMI in Germany and the euro bloc will be released ahead of Producer Prices in Euroland.

GBP/USD collapsed to four-week lows, revisiting the 1.3340 zone on the back of steady UK fiscal concerns. The final S&P Global Services PMI takes centre stage on the UK docket.

USD/JPY added to the ongoing recovery and bounced to five-week tops near the 149.00 hurdle. Next on tap in Japan will be the final S&P Global Services PMI.

AUD/USD made a U-turn and deflated to multi-day lows near 0.6480, where its 100-day SMA also sits. The Ai Group Industry Index is due for release, seconded by the final S&P Global Services PMI and Q2 GDP Growth Rate.

Crude oil prices briefly rose to four-week highs just past the $66.00 mark per barrel of WTI on Tuesday, following the pick-up in geopolitical tensions ahead of the OPEC meeting over the weekend.

Persistent speculation of interest rate cuts by the Fed lent extra wings to Gold and lifted it to a record high of around $3,530 per troy ounce. Silver prices extended their rally, coming closer to the $41.00 mark per ounce, the highest level in the past 14 years.

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Pablo Piovano

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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