Forex Today: Midterms and jobs data come to the fore

Pablo Piovano FXStreet

The US Dollar (USD) has navigated a vacillating range on Tuesday, broadly in line with the rest of the FX galaxy, in a context of steady caution ahead of the US Midterm elections, upcoming key US data releases and steady uncertainty surrounding the Middle East crisis.

The US Dollar Index (DXY) has traded in a consolidative range just below the key 102.00 hurdle, up modestly for the day while reversing the previous day’s pullback. The usual MBA Mortgage Applications are due on November 4, seconded by the ADP Employment Change report, Balance of Trade results, the final S&P Global Services PMI, the ISM Services PMI, and the EIA’s weekly report on US crude oil stockpiles.

EUR/USD has charted a marginal advance, while a convincing surpass of the key 1.1200 barrier still remains elusive. The final S&P Global Services PMI in the EMU and Germany is due, followed by the preliminary Inflation Rate in the euro bloc.

GBP/USD has further extended its multi-day advance, reclaiming the area above the 1.3400 yardstick on Tuesday. The final S&P Global Services PMI will be the only data release across the Channel.

USD/JPY has clinched multi-day tops, flirting at the same time with its key 200-day SMA near 158.60. Next on tap on the Japanese docket will be the Monetary Base figures.

AUD/USD has come under renewed and strong downside pressure, revisiting the area of two-week lows near 0.6960 after the RBA’s rate hike failed to ignite fresh bullish momentum. The Household Spending prints are next on tap in Oz.

Front-month WTI futures (December contract) have weakened further, approaching the $93.00 mark per barrel following speculation that a diplomatic solution to the US-Iran conflict could be shaping up.

Gold has traded on the back foot, once again piercing the $3,900 mark per troy ounce while partially fading Monday’s bullish move. The precious metal’s bearish price action has come on the back of persistent bets for further Fed rate hikes and increasing caution prior to the US Midterm elections results.

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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.

AUD/USD weakens to two-week lows near 0.6960

AUD/USD clinches its second consecutive daily pullback as market participants continue to assess the RBA’s rate hike earlier in the day. Indeed, the pair slipped back toward the 0.6960 zone, or multi-day troughs, following the less-hawkish-than-expected message from the RBA after it hiked the OCR by 25 bps, as widely anticipated.

USD/JPY fails near 159.00 amid weak USD, intervention risks

USD/JPY edges lower during Tuesday’s Asian session, reversing part of the previous day's gains to 158.00 as the US Dollar remains depressed amid hopes for Iran diplomacy and ahead of US midterm elections. Meanwhile, intervention risks support the Japanese Yen, though the uncertainty over the timing of the next BoJ rate hike caps gains. This keeps the pair confined within a familiar range and warrants caution before placing directional bets.