Dollar Slips as Commodities Gain Ground
The U.S. dollar came under pressure on Tuesday, sliding across the board. Commodity prices rose while traders awaited speeches from Fed officials later in the day. Broader market concerns around U.S. fiscal and monetary policy continued to drive positioning.
Key Events
- Judo Bank’s PMI readings from Australia are due later tonight, covering manufacturing, services, and composite sectors.
- Fed’s Harker and Kashkari are due to speak today, with markets looking for policy direction.
- Eurozone consumer confidence slipped further, now at -15.6.
Commodities
- Silver edged up 0.33%, trading at $32.85.
- Brent crude rose 0.45% to $66.56, and WTI gained 0.54% to $62.75.
- Gold surged 1.67% to $3,491.79, its highest level in over a year.
Currency Movements
- EUR/USD rose 0.25% to 1.1545. Despite weak consumer confidence data, the pair was supported by dollar weakness.
- GBP/USD pushed 0.30% higher to 1.3418, trading at levels not seen since October. Stable UK wage data and unemployment helped reinforce the move.
- AUD/USD gained 0.34% to 0.6436. Investors are watching tonight’s Judo Bank PMI releases to gauge economic momentum.
- NZD/USD mirrored the Aussie’s move, also rising 0.34% to 0.6025. The Kiwi remains firm on improved risk sentiment and positive export trends.
- USD/JPY fell 0.62% to 139.95. The yen was stronger across the board, as concerns over Fed policy nudged safe-haven flows toward Japan.
- USD/CNY climbed 0.24% to 7.3097. The yuan remains under modest pressure amid cautious sentiment in Chinese equity markets.
- USD/CHF slipped 0.20% to 0.8074. The Swiss franc remains in demand, with traders shifting into lower-yielding but traditionally stable currencies.
- USD/CAD moved 0.33% lower to 1.3796, reflecting strength in oil prices and broader CAD support.
- USD/MXN dropped 0.36% to 19.6660, extending a strong run for the peso. Support continues from recent central bank guidance and firm local demand.
- USD/INR declined 0.20% to 84.99. The rupee remained steady, bolstered by a stable current account outlook and easing import pressures.
Market Outlook
Focus today will shift to remarks from Fed speakers and upcoming PMI data from the U.S. and Australia. Equity market weakness and volatile treasury yields may continue to influence currency markets. Meanwhile, rising commodities could offer additional support to resource-linked currencies like AUD and CAD.