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FXStreet
Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.
AUD/USD has rapidly left behind Monday’s optimism, shifting its attention to the downside and navigating the area of multi-month lows in the mid-0.6800s. The pair’s severe slump has come amid renewed and strong upside traction in the Greenback following further repricing of a rate hike by the Fed at its December meeting.
USD/JPY attracts some dip-buyers and retakes 158.00 in the Asian session on Tuesday as a fall in Japan’s Household Spending offsets hawkish BoJ Summary of Opinions, undermining the Japanese Yen. Moreover, Fed hike bets support the safe-haven US Dollar and the currency pair. The market focus now shifts to the release of the crucial US CPI report.
Gold slips back to the proximity of the key $4,000 mark per troy ounce on Tuesday, reaching new four-day lows at the same time. The yellow metal’s severe retracement follows the firm performance of the US Dollar, rising US Treasury yields across the curve and reignited speculation of extra Fed tightening.
From AI bubbles to geopolitical breakthroughs, these are some of the five ways why this outlook could go wrong – or right: A severe correction in US stocks triggered by an AI meltdown, second-round inflation effects emerge at scale or geopolitical de-escalation delivers an energy peace dividend.
