AUD/USD remains steady after two days of gains, trading around 0.6970 during Asian hours on Tuesday. The currency pair is hovering in a tight range as the Australian Dollar (AUD) finds support despite local economic headwinds.
The USD/CAD pair attracts some dip-buyers during the Asian session on Tuesday, stalling the previous day's modest pullback from the vicinity of the 1.4300 mark, or its highest level since April 2025.
West Texas Intermediate (WTI), the US crude oil benchmark, is trading around $88.60 during the early Asian trading hours on Tuesday. WTI faces some selling pressure as rising Middle East crude exports and a release of oil stocks by the Group of Seven nations boost supplies.
US President Donald Trump signed an executive order to ease restrictions on the use of a tax-exempt variety of diesel, Bloomberg reported on Monday.
Yemen's Houthi group said on Monday that it carried out three military operations using ballistic and cruise missiles and drones against airports, an oil facility, and military sites across Saudi Arabia, Xinhua News Agency reported.
Bank of Japan (BoJ) Governor Ueda speaks on Tuesday at 06:35 GMT, and his first major remarks since the September 18 hike to 1.25% are the next test of October hike bets. Traders give a second hike on October 30 about a one-in-four chance.
Gold price (XAU/USD) trades on a flat note near $4,140 during the early Asian session on Tuesday. Pressure from a stronger US Dollar (USD) and elevated US Treasury yields was offset by reduced expectations of a Federal Reserve (Fed) rate hike this month.
The Aussie Dollar registers back-to-back days of gains on Monday, even though US Treasury yields edged higher, underpinning the US Dollar, which appreciated against a basket of six currencies but not versus the Australian Dollar. The AUD/USD trades at 0.6972, up 0.37%.
New Zealand's firms are more upbeat and raising fewer prices, and the second half of that matters more for the Kiwi. NZD/USD trades just above 0.5600 after a fresh low beneath it, back near its November 2025 low.
US Treasury yields edged up at the beginning of the week, with the 30- and 10-year yields reaching multi-year highs as inflation expectations rose, as shown in a US Institute for Supply Management (ISM) survey indicating that business activity in the services sector slowed while input prices surged.
Reports that Spain's government was preparing an early election pushed EUR/USD to its lowest since May 2025, and hedge-fund selling in Asia set off option barriers that deepened the fall, traders said. The pair has since recovered more than half of that drop and trades back above 1.1200.
The odds of an October Fed hike have fallen from about two in three in late September to roughly one in five, and GBP/USD hasn't left the range it has traded in since September 24. Monday's range is entirely inside Friday's, and the pair trades just above 1.3200.
The Mexican Peso (MXN) posted back-to-back bullish days as USD/MXN edges lower by about 0.34% on Monday amid softer-than-expected US data and a mediocre Nonfarm Payrolls report last Friday. The exotic pair trades at 18.08 after peaking near 18.26.
Standard Chartered’s Edward Lee expects the Monetary Authority of Singapore (MAS) to deliver another very slight tightening in October, raising the SGD NEER slope to 1.5% from 1.25% while keeping the band parameters unchanged.
Silver (XAG/USD) price drifts higher by over 1.14% on Monday, even as US Treasury yields rise and the Greenback extends its gains by 0.26%, as per the US Dollar Index (DXY). XAG/USD trades at $61.13, after bouncing off daily lows of $60.36.
United Overseas Bank (UOB) strategist Quek Ser Leang reports USD/CNH slipped to 6.7008 before closing at 6.7041, with intraday price action expected to stay between 6.7000 and 6.7105. For the coming 1–3 weeks, he continues to see the pair confined to a 6.6950–6.7270 range.
Gold (XAU/USD) prices drift lower on Monday as a strong US Dollar and high US Treasury yields undermine the precious metal, which has failed to rally as investors expect a less hawkish Federal Reserve (Fed) and have priced out a rate hike this month.
Traders have taken about one quarter-point hike out of their European Central Bank (ECB) forecasts since mid-September, betting the ECB will stop raising rates because of a French debt selloff.
The Japanese Yen (JPY) remains on the back foot against the US Dollar (USD) on Monday as the wide yield differential continues to favour the Greenback, while broader structural headwinds weigh on the Japanese currency. At the time of writing, USD/JPY trades around 158.10, up 0.17% on the day.
The US Dollar (USD) has picked up extra pace on Monday, reaching fresh tops on the back of persistent safe-haven demand, while fiscal concerns in Europe continued to weigh on the broader risk complex.
ING’s report by Coco Zhang and Ewa Manthey explains how the United States is enhancing domestic Rare earth production. Federal support now includes grants, loans, equity stakes, purchase agreements and price floors for key products like NdPr oxide and magnets.
The Pound Sterling (GBP) dives more than 0.19% against the US Dollar (USD) at the beginning of the week, despite a dip in US services sector activity and elevated US Treasury yields. The GBP/USD trades at 1.3218 at the time of writing.
EUR/CHF holds modest losses on Monday as growing fiscal concerns in France weigh on the Euro (EUR).
AUD/USD advances on Monday, trading around 0.6970 at the time of writing, up 0.34% on the day. The pair manages to gain ground despite persistent strength in the US Dollar (USD), which remains supported by elevated Treasury yields and weakness in the Euro (EUR).
Brown Brothers Harriman’s (BBH) Elias Haddad reports the Euro (EUR) is underperforming major currencies, with EUR/USD briefly hitting 1.1161, its lowest since May 2025. Elias Haddad flags France’s budget crisis spilling into wider Eurozone bond markets and complicating potential European Central Bank (ECB) Transmission Protection Instrument activation, leaving the Euro pressured by rising fiscal risk and expectations of a shallower ECB hiking cycle.
France's government owes close to 120% of what its economy produces in a year. The gap between what France and Germany pay to borrow for 10 years reached about 1.5 percentage points on Friday, the widest since 2011.
USD/CAD reverses its earlier gains on Monday as the Canadian Dollar (CAD) outperforms its major peers, while the US Dollar (USD) consolidates after mixed US business activity data.
Commerzbank’s Moses Lim notes that USD/KRW declined on Friday and over the week as robust South Korean exports and supportive policy actions bolstered the Korean Won. Elevated but easing inflation allows the Bank of Korea to stay hawkish while likely holding rates in October.
Christopher Wong at OCBC expects the Indonesian Rupiah (IDR) to see some near-term relief from softer United States (US) payrolls and a wider trade surplus, with policymakers emphasizing IDR stability.
Gold (XAU/USD) (XAU/USD) lacks clear directional momentum on Monday. A stronger US Dollar and elevated US Treasury yields cap the upside, while easing Federal Reserve (Fed) interest-rate hike bets cushion the downside. At the time of writing, XAU/USD trades around $4,142, little changed on the day.
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