The US dollar is struggling to find demand on Tuesday after posting losses against its major rivals at the start of the week. Later in the day, NFIB Business Optimism Index for August will be featured in the US economic calendar, while, the Bureau of Labor Statistics will publish the preliminary benchmark revisions to employment data.
Growing expectations of the Federal Reserve opting for multiple rate cuts this year weighed on the USD at the beginning of the week, with the DXY Dollar Index losing 0.3% and posting its lowest daily close since late July.
Meanwhile, Wall Street’s main indexes edged higher to close Monday with modest gains. Early Tuesday, US stock index futures traded in positive territory.
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During the Asian trading hours, the data from Australia showed that Westpac Consumer Confidence slumped to -3.1% in September from 5.7% in August. Furthermore, National Australia Bank’s Business Confidence Index dropped to 4 in August from 8 in July.
After rising more than 0.5% on Monday, the AUDUSD pair seems to have entered a consolidation phase at around 0.6600 on Tuesday.
French Prime Minister François Bayrou lost the confidence vote, as anticipated, on Monday, and President Emmanuel Macron is expected to announce a replacement in the coming days.
Despite the political turmoil in France, EURUSD benefited from the broad-based selling pressure surrounding the USD and closed in positive territory on Monday. In the European session on Tuesday, the pair fluctuated in a narrow range above 1.1750.
Gold extended its rally on Monday and continued to stretch higher to touch a new record-high near $3,660 on Tuesday. XAUUSD corrects lower in the European morning and trades below $3,650.
GBPUSD registered modest gains on Monday, supported by the persistent USD weakness. The pair holds its ground and trades in positive territory above 1.3550 early Tuesday.
USDJPY remains under bearish pressure and declined toward 147.00 in the European session on Tuesday.
Japan’s trade negotiator Ryosei Akazawa said earlier in the day that US tariffs on Japanese goods, including cars and auto parts, are set to be lowered by September 16.
(Source: OANDA)
