During the Asian session, the key event will be the Reserve Bank of Australia meeting. China's Caixin Services PMI is due, along with the final PMIs. Eurozone will release wholesale inflation data. From the US, the JOLTS report and the ISM Services PMI are also due.
Here is what you need to know on Tuesday, December 5:
The US Dollar Index (DXY) rose on Monday and posted the highest daily close since November 23 on a volatile day. After starting the week under pressure, the Greenback recovered amid a reversal in commodities, supported by higher Treasury yields. The DXY rose from near 103.00 to 103.80 ahead of crucial US data.
The US labor market data saga kicks off on Tuesday with the JOLTS Job Openings report. Also due are the final PMI and the ISM Services PMI. More jobs data is due later in the week with the ADP on Wednesday, Jobless Claims on Thursday, and Nonfarm Payrolls on Friday. Next week is also busy with significant figures and the FOMC meeting so that markets won't hear from Fed officials during these days.
China's Caixin Service PMI for November is due, with a modest recovery from 50.4 to 50.8 expected. A positive number could contribute to risk appetite, boosting antipodean currencies in particular. The final readings of global PMIs are also due, which should not bring major surprises.
EUR/USD extended its decline from above 1.1000 and found support at 1.0800. The short-term bias remains downward, but technical indicators offer signs of consolidation. Eurostat will release the Producer Price Index for October, which is expected to show a 0.2% increase with the annual rate rising from -12.4% to -9.4%.
USD/JPY rose from the lowest levels since September at 146.20 to 147.35, boosted by higher Treasury yields. The short-term trend is still bearish. The Tokyo Consumer Price Index is due on Tuesday.
The Swiss Franc weakened after inflation data from Switzerland showed a decline of 0.2% in the Consumer Price Index in November, bringing the annual rate to 1.4% down from 1.7% and below the expected 1.6%. USD/CHF had its best day in weeks, recovering from monthly lows to 0.8750.
GBP/USD found resistance again at the 1.2700 area and pulled back. The pair continues to trade sideways between 1.2700 and 1.2600, currently closer to the lower limit.
AUD/USD reversed from monthly highs affected by the stronger Dollar and the slide in commodities. The pair faces increasing resistance as it approaches 0.6700; on the downside, the 200-day Simple Moving Average (SMA) at 0.6580 emerges as a key support. The Reserve Bank of Australia (RBA) will have its monetary policy meeting, and no change in rates is expected. The final Job Bank MI is also due, along with the Q3 Current Account balance.
After hitting a record high, Gold pulled back sharply, falling to $2,020. From the top, it dropped more than $100. The decline could continue, especially if the price drops below $2,010, indicating that the selling pressure is still intense. Silver lost 3.75% on Monday, after a 5% slide from the multi-month high it reached after the weekly opening; XAG/USD ended around $24.50. The near-term outlook for metals is mixed, and volatility will likely remain high.
Bitcoin rose above $40,000 for the first time this year; BTC/USD stands near $42,000 with positive momentum intact, unaffected by the reversal in metals and the stronger Dollar.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD climbs above 1.1300 on renewed USD weakness
EUR/USD gains traction in the European session on Friday and trades above 1.1300. Growing concerns about the US fiscal outlook and government debt after the US House of Representatives passed President Trump's tax bill weigh on the US Dollar and help the pair push higher.
GBP/USD rises to 1.3450 area, closes in on multi-year high
GBP/USD benefits from the selling pressure surrounding the US Dollar and rises to the 1.3450 area in the European session on Friday. The data from the UK showed that Retail Sales rose by 1.2% in April, surpassing the market expectation of 0.2% and supporting Pound Sterling.
Gold bulls have the upper hand amid safe-haven buying, weaker USD
Gold price attracts some dip-buyers following the previous day's pullback from a two-week high and trades above the $3,300 round figure during the Asian session on Friday. Moreover, the fundamental backdrop suggests that the path of least resistance for the precious metal remains to the upside and supports prospects for an extension of over a one-week-old uptrend.
Avalanche Price Forecast: AVAX eyes $30 as FIFA, VanEck back blockchain ecosystem
Avalanche (AVAX) is gaining bullish momentum, extending gains on Friday, trading at $25.74 as investor confidence grows on the back of two major developments. FIFA, football’s global governing body, has announced plans to build its own Layer-1 blockchain on the Avalanche network.
FOMO vs fundamentals: Retail buys the dip, institutional investors stay cautious
Retail optimism is rising, but institutions are still treading carefully amid lingering macro and earnings risks. Policy and fiscal uncertainty remain elevated, with trade tensions, U.S. debt concerns, and a cautious Fed dominating the backdrop.
The Best brokers to trade EUR/USD
SPONSORED Discover the top brokers for trading EUR/USD in 2025. Our list features brokers with competitive spreads, fast execution, and powerful platforms. Whether you're a beginner or an expert, find the right partner to navigate the dynamic Forex market.