Forex Today: Australian inflation takes centre stage alongside geopolitics

Pablo Piovano FXStreet

The US Dollar (USD) regains some composure on Tuesday, rapidly reversing Monday’s downtick against the backdrop of persistent uncertainty around the US-Iran peace deal and the reopening of the Strait of Hormuz.

Here is what you need to know on Wednesday, May 27:

The USD Index (DXY) climbed to two-day highs north of the 99.00 hurdle, propped up by unabated concerns in the Middle East conflict. The weekly MBA Mortgage Applications are due on Wednesday, seconded by the ADP Employment Change Weekly. In addition, the Fed’s Logan and Cook are due to speak.

EUR/USD traded with humble losses, retreating toward the 1.1600 region and fading Monday’s decent advance. The ECB will release its Financial Stability Review (FSR).

GBP/USD met some tough resistance beyond the 1.3500 level, retreating alongside the generalised pullback in the risk complex. There will be no releases on the UK calendar.

USD/JPY flirted with multi-week tops around 159.30, resuming its uptrend following Monday’s hiccup. BoJ’s Governor Ueda is due to speak in an otherwise empty docket in Japan.

AUD/USD alternated gains with losses around 0.7170, failing to extend Monday’s constructive performance. Next in Oz will be the release of key inflation figures along with Construction Work Done readings and the speech by the RBA’s Hewson.

WTI prices dropped to the vicinity of the $89.00 mark per barrel as traders continued to closely follow developments in the Middle East. The API will publish its weekly prints on US crude oil stockpiles on Wednesday.

Gold deflated to two-day lows, putting once again the $4,500 mark per troy ounce to the test amid a decent rebound in the US Dollar and unabated effervescence on the US-Iran front.

Author

Pablo Piovano

FXStreet

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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