The US Dollar is holding its ground against major rivals early Wednesday as markets wait for the US Bureau of Labor Statistics to announce the preliminary benchmark revisions to Nonfarm Payrolls.
Later in the American session, the Federal Reserve will release the minutes of its July 30-31 monetary policy meeting.
The DXY Dollar Index clings to modest recovery gains near 101.50 early Wednesday, after losing 1% since the beginning of the week.
The benchmark 10-year US Treasury bond yield fluctuates at around 3.8% after losing nearly 2% this week and US stock index futures trade marginally higher following the mixed action seen in Wall Street on Tuesday.
Gold benefited from the broad-based USD weakness on Tuesday and climbed to a new record-high of $2,531. XAUUSD seems to have entered a consolidation phase midweek and was last seen trading in a narrow channel slightly above $2,510.
Inflation in Canada, as measured by the change in the Consumer Price Index (CPI), softened to 2.5% on a yearly basis in July from 2.7% in June, as expected, Statistics Canada reported on Tuesday.
USDCAD’s losses remained limited following this report and the pair closed the day modestly lower. Early Wednesday, USDCAD holds steady above 1.3600.
AUDUSD extended its uptrend and closed the fourth consecutive trading day in positive territory on Tuesday. The pair remains relatively quiet and moves up and down in a narrow channel near 0.6750 in the European morning.
In Asian trading on Thursday, preliminary August Judo Bank Manufacturing and Services PMI data from Australia will be watched closely by market participants.
EURUSD preserved its bullish momentum and rose above 1.1100 for the first time in 2024 on Tuesday. The pair is staging a downward correction, but is to stay afloat above 1.1100 in early European trading on Wednesday.
GBPUSD advanced to its highest level in over a year, above 1.3050 on Tuesday. The pair edges lower in the European morning and was last seen trading near 1.3020.
USDJPY registered losses for the third consecutive trading day on Tuesday before staging a rebound. The pair was up nearly 0.5% on the day, trading a few pips below 146.00.
(Source: OANDA)
