The US Dollar (USD) faced continued pressure following a decline on Friday, as investors scrutinized the latest Non-Farm Payroll (NFP) figures and contemplated the possibility of additional rate cuts by the Federal Reserve. On Tuesday, September 9, market observers noted that the US Dollar Index (DXY) slipped back to levels not seen in several weeks, hovering near 97.50. This decline coincided with a bearish trend in US yields across the curve.
Attention was drawn to the upcoming NFP Annual Revision, anticipated alongside the NFIB Business Optimism Index. Additionally, the American Petroleum Institute (API) was set to release its weekly report on US crude oil inventories, potentially impacting market sentiment.
In the forex market, the EUR/USD pair recorded modest gains, testing the upper end of its trading range around 1.1750, a level investors are closely monitoring. The European Central Bank’s officials Montagner and Machado were scheduled to deliver remarks that could influence further trading.
The GBP/USD pair also continued its upward trajectory, rising for the second consecutive day. It faced a key resistance level near 1.3550, with the British Retail Consortium’s Retail Sales Monitor also on the agenda, alongside a speech by Bank of England’s Breeden.
Meanwhile, the USD/JPY pair exhibited erratic behavior, with earlier moves bringing it back to the 148.50 zone, although momentum appeared to falter thereafter. Japanese economic data, such as Machine Tool Orders, was expected to be released, which might further inform trading decisions.
The Australian Dollar (AUD) advanced strongly, reaching seven-week highs just shy of the 0.6600 mark. The Westpac Consumer Confidence Index and the National Australia Bank (NAB) Business Confidence gauge were among the economic indicators expected to influence the Australian market.
In energy markets, West Texas Intermediate (WTI) crude prices edged slightly above $62.00 per barrel, reversing a three-day downward trend as traders processed the recent OPEC+ output hike.
In the precious metals sector, gold prices soared past the $3,600 mark per troy ounce, achieving all-time highs, buoyed by expectations of further Federal Reserve rate cuts in the near future. Silver also saw significant price action, trading above the $41.00 region and revisiting levels not seen in over 14 years.
