Asian stock markets reflect broader strength on Wednesday, as oil prices have fallen further on renewed hopes of the Strait of Hormuz, a vital passage for almost 20% of global energy supply, reopening.
West Texas Intermediate (WTI) – the benchmark US Crude Oil price – remains under some selling pressure for the third straight day and drops to a nearly two-week low during the Asian session on Wednesday.
USD/IDR remains stronger for the second successive day, trading around 17,760 during the Asian hours on Tuesday. The pair continues to hold its ground while the Indonesian Rupiah (IDR) faces ongoing pressure from a cautious market sentiment and persistent external headwinds.
The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.00 in the early European trading hours on Wednesday.
Gold prices fell in India on Wednesday, according to data compiled by FXStreet.
Japan's Economy Minister Minoru Kiuchi said on Wednesday that he expects consumer prices to gradually rise amid the Middle East situation.
The GBP/USD pair trades with a negative bias below mid-1.3600s during the Asian session on Wednesday, eroding a part of the previous day's strong gains.
The Euro (EUR) continues to trade in a tight range at around 1.1660 against the US Dollar (USD) during the Asian trading session on Wednesday.
Gold (XAU/USD) attracts fresh sellers following the previous day's two-way price swings and trades below $4,650 during the Asian session on Wednesday.
Silver price (XAG/USD) is up almost 1% to near $69.40 during the Asian trading session on Wednesday.
NZD/USD depreciates after registering modest gains in the previous day, trading around 0.5960 during the Asian hours on Wednesday.
The USD/JPY pair loses ground to near 158.90 during the Asian trading hours on Wednesday. The US Treasury’s bond buyback programs weigh on the US Dollar (USD) against the Japanese Yen (JPY).
AUD/JPY gains ground for the second consecutive day, trading around 114.20 during the Asian hours on Wednesday.
According to August 17-24 survey in a Reuters poll, 57% of economists expected the Bank of Japan (BoJ) to raise its interest rate in September, a sharp turnaround from a July poll.
The AUD/USD pair attracts buyers for the second straight day and climbs to the 0.7170 area following the release of Australian consumer inflation figures during the Asian session on Wednesday.
West Texas Intermediate (WTI) oil price extends its losses for the third consecutive day, trading around $80.10 per barrel during the Asian hours on Wednesday.
The USD/CAD pair edges higher during the Asian session on Wednesday, though it remains confined within the previous day’s range. Spot prices currently trade around mid-1.3800s as traders now look to the US Personal Consumption Expenditures (PCE) Price Index for some meaningful impetus.
On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7829 compared to the previous day's fix of 6.7852 and 6.7166 Reuters estimate.
The EUR/USD pair flatlines near 1.1675 during the early Asian trading hours on Wednesday. The US Treasury's decision to expand its long-term bond buyback program could weigh on the US Dollar (USD) against the Euro (EUR).
Canada said that it will implement 50% retaliatory tariffs on $20bn worth of US goods, following through on Prime Minister Mark Carney’s vow to match US President Donald Trump’s duties “dollar for dollar,” the Guardian reported.
Iranian Foreign Minister Abbas Araghchi and his Omani counterpart Badr Albusaidi discussed an “interim framework” aimed at resuming shipping through the Strait of Hormuz, Bloomberg reported on Tuesday.
Gold price (XAU/USD) rises to around $4,670, the highest since May 14, during the early Asian session on Wednesday. The precious metal extends the rally amid a weaker US Dollar (USD) and as the US Treasury’s bond buyback plans.
The Aussie Dollar advanced on Tuesday, gaining over 0.20% as the Greenback edged lower, amid minutes from the Reserve Bank of Australia (RBA)'s last meeting suggesting the board was close to raising rates. At the time of writing, the AUD/USD trades at 0.7163, after bouncing off daily lows of 0.7137.
USD/JPY trades just above 159.00 late on Tuesday, August 25, holding a gain of under a tenth of a percent across a session that has covered 44 pips between a floor near 159.00 and a ceiling short of 159.50.
GBP/USD trades near 1.3650 late on Tuesday, August 25, up around a tenth of a percent on a session that has covered barely 33 pips between a floor just above 1.3600 and a ceiling a shade over 1.3650.
OCBC’s Sim Moh Siong and Christopher Wong expect USD/SGD to consolidate as earlier Singapore Dollar (SGD) gains face a modest US Dollar (USD) rebound and position unwinding ahead of United States (US) core Personal Consumption Expenditures (PCE) Price Index data and Jackson Hole.
Australia’s Consumer Price Index (CPI) rose by 3.5% year-over-year (YoY) in July, compared to a 3.8% growth reported in June, the latest data published by the Australian Bureau of Statistics (ABS) showed on Wednesday.
The GBP/JPY surpassed a downtrend resistance line and reclaimed the 217.00 level on Tuesday, as the Japanese Yen weakened while Sterling pushed to a new three-week high at 217.48. At the time of writing, the cross-pair trades at 217.31, up 0.20%.
The Mexican Peso holds firm near 10-year highs against the US Dollar on Tuesday, as the USD/MXN pair sits below the 16.95 level while investors digest US economic data and recent developments between the US and Iran. The exotic pair trades at 16.94, virtually unchanged.
OCBC’s Sim Moh Siong and Christopher Wong highlight that Thai Baht (THB) has rallied to a two‑month high on softer US Dollar (USD), lower Oil prices, strong electronics exports and Gold-related flows.
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