Forex Today: The RBA takes centre stage

The US Dollar made a U-turn and left behind three days of gains in quite a negative kick-off of the new trading week, all amid a generalised sharp recovery in the risk-associated universe.

Here is what you need to know on Tuesday, March 4:

The US Dollar Index (DXY) came under renewed selling pressure, setting aside three daily advances in a row and returning to the 106.50 region amid a mixed tone in US yields. The RCM/TIPP Economic Optimism Index is due, seconded by the API’s weekly report on US crude oil inventories. In addition, the Fed’s Williams is due to speak.

EUR/USD jumped to two-day highs above the 1.0500 mark on the back of renewed optimism around a potential end of the Russia-Ukraine war. Next on tap on the euro docket will be the release of the Unemployment Rate in the region, while the final HCOB Services PMIs in Germany and the euro area, as well as Producer Prices in the whole bloc are all expected on March 5.

GBP/USD climbed to fresh 2025 peaks past the 1.2700 hurdle on the back of the intense sell-off in the Greenback. The final S&P Global Services PMI will take centre stage on March 5, seconded by speeches by the BoE’s Bailey and Pill.

Renewed downside pressure motivated USD/JPY to leave behind three consecutive days of gains despite an initial move to muti-day highs around 151.30. Japan’s Unemployment Rate will be published, followed by Capital Spending figures and the Consumer Confidence gauge.

AUD/USD set aside six consecutive daily pullbacks and regained the 0.6200 barrier and above on Monday. The publication of the RBA Minutes will be at the centre of the debate, along with Retail Sales, and quarterly Current Account results. Additionally, the RBA’s Hauser is due to speak.

WTI dropped markedly and broke below the $68.00 mark per barrel to hit new YTD lows after the OPEC+ confirmed it will proceed with supply hikes in April.

Prices of Gold charted a decent advance and revisited the vicinity of the $2,900 region per troy ounce, leaving behind two daily drops in a row. Silver prices rebounded markedly to two-day peaks around $31.70 per ounce.