Forex Today: The RBA and Fedspeak grab all the attention

The US Dollar (USD) has stated the week with slight gains, resuming its recent uptrend and leaving behind Friday’s hiccup. In the meantime, further tightening by the Fed remains at the centre of almost every debate, while re-escalating tensions in the Middle East continue to lend support to the buck and limit any potential declines.

Here is what you need to know on Tuesday, September 29:

The US Dollar Index (DXY) has managed to keep the trade just above the 101.00 barrier, helped by the unabated move higher in US Treasury yields across the spectrum. The FHFA’s House Price Index will be released along with JOLTs Job Openings, the Conference Board’s Consumer Confidence gauge and the API’s weekly report on US crude inventories. In addition, the Fed’s Goolsbee, Musalem and Williams are due to speak.

EUR/USD has rapidly faded Friday’s uptick and refocused on the lower end of its range, revisiting the area of multi-week troughs near 1.1350. The final print of the EMU’s Consumer Confidence is due, followed by Consumer Inflation Expectations tracked by the European Commission. Additionally, the ECB’s Cipollone, Lane, Lagarde and Vujčić will also speak.

GBP/USD has added to Friday’s advance, reaching new three-day highs around 1.3280. The BRC Shop Price Inflation kicks off the calendar across the Channel, followed by the BoE’s Mortgage Approvals/Lending, M4 Money Supply, Consumer Credit and Net Lending to Individuals. 

USD/JPY has traded without clear direction in the low 157.00s, with bears struggling to extend Friday’s severe pullback. Japan will only see the release of the final Coincident and Leading Economic Indexes.

AUD/USD has started the week in an irresolute mode, challenging once again the 0.7000 contention zone. The RBA is widely anticipated to hike its OCR at its meeting. Data-wise, Household Spending figures will also be released.

Front-month WTI futures have trimmed their initial move past the 96.00 mark per barrel, stabilising below $93.00 amid the resurgence of geopolitical tensions in the US-Iran-Hormuz conflict.

Gold has retreated to levels last seen in early August near the $4,100 mark per troy ounce following the better tone in the US Dollar and the strong rebound in US Treasury yields across the curve.