NZD/USD remains mildly bid as bulls approach short-term resistance line amid sluggish session. Sustained trading beyond 50-HMA, firmer RSI adds strength to bullish bias. One-week-old horizontal support area adds to the downside filters.

EUR/USD picks up bids to reverse early Asian session losses, stays mildly bid around weekly top. DXY tracks sluggish yields even as Fedspeak favors 75 bps rate hike in September. Final readings of Germany’s HICP inflation for July can entertain traders ahead of US CPI.

EUR/USD picks up bids to reverse early Asian session losses, stays mildly bid around weekly top. DXY tracks sluggish yields even as Fedspeak favors 75 bps rate hike in September. Final readings of Germany’s HICP inflation for July can entertain traders ahead of US CPI.

EUR/USD picks up bids to reverse early Asian session losses, stays mildly bid around weekly top. DXY tracks sluggish yields even as Fedspeak favors 75 bps rate hike in September. Russian oil pipeline halt, softer China inflation underpin recession fears and the US dollar. Final readings of Germany’s HICP inflation for July can entertain traders ahead of US CPI.

While US inversions beyond 50 basis points have been rare in recent decades, “there is no natural limit on how inverted the 2s10s curve can go.”

The prospect of a hard landing for the US economy, “will likely skew curves flatter as hikes near term will probably be viewed as needed cuts in the future.”

If growth remains strong, “the curve may continue to flatten but to a lesser extent with longer-dated tenors also supported.”

Should “hold curve flattening positions until inflation and employment data moderate, given possible further upward re-pricing of the terminal rate.”

A 50% Fibo retracement at 0.8463 is acting as a major barricade for the cross. An establishment in a bullish range (60.00-80.00) by the RSI (14) indicates bullish momentum. The 200-EMA is still untouched, however, the upside momentum warrants a break of the same.

USD/CHF picks up bids to reverse recent losses inside the daily trading range. US dollar traces yields ahead of the key CPI data amid recession woes, recently up hawkish Fed bets. Sluggish markets, light calendar amplified pre-data anxiety, equity futures stay indecisive.

USD/CAD retreats to 1.2885 inside the 20-pip daily trading range heading into Wednesday’s European session. In doing so, the Loonie pair justifies the options market signals that tease bears of late.

That said, the one-month risk reversal (RR) of the USD/CAD, a spread between the call options and the put options, drop for the second consecutive day to -0.020 by the end of Tuesday’s North American session. With this, the weekly RR prints the biggest fall in four weeks.

It should be noted, however, that the market’s anxiety ahead of the US Consumer Price Index (CPI) data for July appear to challenge the pair’s latest moves. The inflation numbers become even more important of late as the recently firmer US jobs report underpinned the hawkish Fed bets.

On Tuesday, US Nonfarm Productivity improved to -4.6% during the second quarter (Q2), -4.7% expected and -7.4% prior, whereas the Unit...

GBP/USD is juggling in six-pips as investors are expected to create positions post US Inflation data. For Fed’s neutral stance, a spree of a slowdown in price pressures is required. The UK's GDP is expected to remain vulnerable ahead.

Steel price retreats amid cautious markets, fears of less margin on the production front. Softer China inflation, economic slowdown concerns join pre-CPI anxiety to weigh on sentiment. The anticipated increase in output joins firmer coke prices to challenge profits of steel producers.

Asian equities have dropped sharply as investors have turned risk-averse ahead of US Inflation. China’s inflation has increased to 2.7% but remained lower than expectations of 2.9%. Oil prices have slipped back below $90.00 on inventory buildup reported by API.

AUD/USD retreats to 0.6960 while portraying sluggish moves inside a short-term bull flag. That said, the Aussie pair recently eased from the 200-HMA during Wednesday’s Asian session.

Given the lower high in RSI (14) backing the latest weakness in the AUD/USD prices, as well as the bearish MACD signals, the quote is likely to remain depressed inside a flag, currently between 0.6940 and 0.6980.

It’s worth noting that the 23.6% Fibonacci retracement level of August 01-05 declines, near 0.6910, could test the AUD/USD bears after 0.6940. However, a one-week-old horizontal area near 0.6885 might restrict the Aussie pairs’ further downside.

On the contrary, the 200-HMA level near 0.6965 guards the quote’s immediate recovery.

Following that, the stated flag’s upper line, close to 0.6980 by the press time, holds the key to the AUD/USD pair’s rally.

During the rise, the Aussie pair may take a breather around tops marked on Monday and on August 01, near...

USD/INR is expected to stretch its valuations after overstepping the weekly high at around 79.80. A one-time drop in US inflation won’t be sufficient to trim Fed's hawkish stance. Oil prices have failed to recapture the $90.00 territory.

Gold price takes offers to renew intraday low, reverses from monthly top. US dollar traces sluggish yields, dicey market sentiment ahead of US CPI for July. Softer US inflation can join technical details to favor XAU/USD bulls targeting $1,805.

Xiao Qian, the top representative of China's Communist Party in Australia, responded to the Australian-Sino trade conflict and the issue of the political imprisonment of an Australian in China on Wednesday.

Xiao said, "Currently, there have been top-level communications, high-level contacts even face-to-face contacts, but we have not yet come to the stage to discuss how to solve those specific issues either political issues or trade issues or some other individual cases issues.”

“We're ready to compare notes with the new government and to get engaged in the process,” he added.

Following the Japanese Cabinet reshuffle on Wednesday, the country’s Finance Minister Shunichi Suzuki said that Japan’s financial position is still severe.

He added that “it's critical to continue reacting to covid and inflation.”

EUR/USD picks up bids to reverse early Asian session losses, stays mildly bid around weekly top. DXY tracks sluggish yields even as Fedspeak favors 75 bps rate hike in September. Russian oil pipeline halt, softer China inflation underpin recession fears and the US dollar. Final readings of Germany’s HICP inflation for July can entertain traders ahead of US CPI.

A consolidation above the 200-EMA adds to the upside filters. The RSI (14) is oscillating in a 40.00-60.00 range and awaits a potential trigger. For more upside, the greenback bulls need to break above the 134.34-135.58 range decisively.

NZD/USD is scaling towards 0.6300 as the DXY has declined ahead of US CPI. A lower consensus for the US CPI has forced investors to dump the DXY. China's inflation has increased to 2.7% but remained lower than expectations.

AUD/USD is holding lower ground near 0.6950 as sellers keep reins following softer Chinese CPI and PPI data. Markets remain risk-averse ahead of US inflation, which is crucial for the Fed's next rate hike move. 

AUD/JPY fades bounce off intraday low after softer-than-expected China data. China CPI, PPI dropped below market forecasts in July, Japan PPI improved on YoY. Sluggish yields, cautious mood act as extra barriers to trading. US inflation data will be important for market players amid talks of the Fed’s aggression, economic slowdown.

USD/CNH snaps two-day downtrend after softer-than-expected China CPI, PPI for July. Bulls pierced weekly resistance line, 200-HMA after data, sustained break of 6.7600 awaited for further upside. 61.8% Fibonacci retracement level, ascending trend line from July 31 restrict immediate downside.