The AUD/USD fell sharply near the 0.6920 level on Tuesday, as investors await the upcoming Australian Consumer Price Index (CPI) release for fresh clues on the Reserve Bank of Australia’s (RBA) policy outlook.
The Dow Jones Industrial Average (DJIA) held in the green through Tuesday even as the rest of the equity board bled. On the surface that reads as strength; underneath, it is anything but. The index held up for the least flattering reason on offer, namely its composition.
DBS economist Radhika Rao reports that India and US are close to formalising an interim trade agreement under a new framework first agreed in February.
United States 2-Year Note Auction: 4.189% vs 4.071%
Scotiabank strategists Shaun Osborne and Eric Theoret report the Japanese Yen (JPY) is slightly firmer, outperforming G10 peers despite broad US Dollar (USD) strength, as stronger PMIs signal improving growth. They see signs of exhaustion in USD/JPY’s advance with yield spreads stabilizing.
West Texas Intermediate (WTI) US Oil declines by more than 1% on Tuesday and trades around $73.00 at the time of writing, pressured as traders continue to assess diplomatic developments between the United States (US) and Iran.
EUR/GBP trades little changed on Tuesday after a sharp slide the previous day, triggered by UK Prime Minister Keir Starmer's resignation, which lifted the British Pound (GBP) across the board.
The USD/JPY pair is trading in a neutral zone on Tuesday as investors digest the latest United States (US) Purchasing Managers Index (PMI) figures and recent ADP employment data, awaiting a stronger catalyst from Federal Reserve (Fed) commentary.
The Pound Sterling (GBP) dives over 0.40% on Tuesday as risk appetite shifts sour, as the recently sworn-in MP Andy Burnham prepares to succeed Prime Minister Keir Starmer, who lasted two years at the job. At the time of writing, GBP/USD trades at 1.3195, after reaching a daily high of 1.3257.
TD Securities strategist Prashant Newnaha notes that softer S&P Australia Flash Composite PMI data, including weaker new orders and moderating price pressures, supports the Reserve Bank of Australia keeping its cash rate unchanged at 4.35% in August.
Gold (XAU/USD) trades on the back foot on Tuesday, pressured by a stronger US Dollar (USD) and rising expectations that the Federal Reserve (Fed) could raise interest rates later this year.
Rabobank’s energy strategists Joe DeLaura and Florence Schmit cut TTF Natural Gas forecasts on easing supply risks from the Strait of Hormuz reopening.
