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Forex Today: Yen wakes up as the Dollar remains robust, RBNZ next

During the Asian session, the key event will be the Reserve Bank of New Zealand monetary policy decision. Throughout the day, the final Service PMIs will be released. Eurostat will report the Producer Price Index and Retail Sales. The US will report the ISM Services PMI and Factory Orders. ADP will release its private employment report.

Here is what you need to know on Wednesday, October 4:

The Yen jumped on Tuesday, most likely due to an intervention from  Japanese authorities to prevent further depreciation of the currency. The move occurred when USD/JPY was trading above 150.00 and sent the pair as low as 147.28. However, it later trimmed losses and rose to 149.00. The short-term bias is downward, with volatility expected.

US JOLTS Job Openings came in above expectations and pushed US yields higher. The 10-year yield reached 4.80%, the highest since 2007. The US Dollar Index climbed to 107.34, the highest since November of last week, but pulled back with the USD/JPY retreat, ending the day slightly below 107.00.

The Greenback remains supported across the board by positive US data, higher yields, and cautious market sentiment. On Wall Street, stocks lost an average of 1.40% on Tuesday. On Wednesday, the ADP Employment report is due.

EUR/USD printed a fresh ten-month low near 1.0450 and then rebounded modestly to 1.0470. The pair remains under pressure. On Wednesday, Eurostat will release Retail Sales and the Producer Price Index.

GBP/USD finished the day flat, moving sideways around 1.2070. The pair bottomed after US data at 1.2052, the lowest level since March.

The Swiss Franc lagged behind following a lower-than-expected reading of the Swiss Consumer Price Index (CPI) for September, with the annual rate rising from 1.6% to 1.7%, below the expected 1.8%. USD/CHF peaked at 0.9244 and then pulled back toward 0.9200.

The Reserve Bank of New Zealand (RBNZ) will announce its decision on Wednesday. The key rate is expected to remain unchanged at 5.5%. NZD/USD dropped below the 20-day Simple Moving Average (SMA) but managed to rise back above 0.5900.

AUD/USD tumbled for the second consecutive day, affected by the risk-off sentiment and the stronger dollar. The pair reached levels below 0.6300 last seen back in November 2022.

USD/CAD rose for the third consecutive day, breaking above September highs. The pair closed above 1.3700 and is now approaching March highs at 1.3861.

Gold dropped for the seventh day in a row, bottoming at $1,814 before trimming losses and moderately rising to $1,825. Silver recovered somewhat after falling more than 5% in the previous session, ending around $21.20.


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Author

Matías Salord

Matías started in financial markets in 2008, after graduating in Economics. He was trained in chart analysis and then became an educator. He also studied Journalism. He started writing analyses for specialized websites before joining FXStreet.

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