Forex Today: Dollar keeps running on fear

Valeria Bednarik FXStreet

What you need to know on Wednesday, August 18:

The dollar rallied on the back of risk-aversion, exacerbated by dismal US data. Retail Sales in the country fell by 1.1% in July, much worse than anticipated. Stocks plunged, although government bond yields posted modest intraday slides.

Commodity-linked currencies were the worst performers, with AUD/USD down to a fresh 2021 low of 07242. The USD/CAD pair peaked at 1.2648, its highest in almost a month.

Upbeat UK employment data fell short of backing GBP/USD that trades near a daily low of 1.3725. The EUR/USD pair is once again poised to challenge the 1.1700 threshold.

Gold edged lower after advancing to $1,795.52 a troy ounce, ending the day in the red at around 1,782. Crude oil prices also lost ground with WTI currently trading at around $66.40 a barrel.

During the upcoming Asian session, Australia will release the Q2 Wage Price Index, while the Reserve Bank of Australia will announce its monetary policy decision. later into the day, the US Federal Reserve will publish the Minutes of its latest meeting.

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Author

Valeria Bednarik

FXStreet

Valeria Bednarik was born and lives in Buenos Aires, Argentina. Her passion for math and numbers pushed her into studying economics in her younger years.

EUR/USD tests nine-day EMA support near 1.1850

EUR/USD remains in the negative territory for the fourth successive session, trading around 1.1870 during the Asian hours on Friday. The 14-day Relative Strength Index momentum indicator at 56 stays above the midline, confirming steady momentum. RSI has eased but remains above 50, indicating momentum remains constructive for the bulls.

GBP/USD consolidates around 1.3600 vs. USD; looks to US CPI for fresh impetus

The GBP/USD pair remains on the defensive through the Asian session on Friday, though it lacks bearish conviction and holds above the 1.3600 mark as traders await the release of the US consumer inflation figures before placing directional bets.

Gold recovers swiftly from weekly low, climbs back closer to $5,000 ahead of US CPI

Gold regains positive traction during the Asian session on Friday and recovers a part of the previous day's heavy losses to the $4,878-4,877 region, or the weekly low. The commodity has now moved back closer to the $5,000 psychological mark as traders keenly await the release of the US consumer inflation figures for more cues about the Federal Reserve's policy path.