The US Dollar commenced the week on a defensive note, quickly shedding Friday’s gains and pivoting lower. However, the Greenback also tested three-day lows as market participants seemingly absorbed the robust Nonfarm Payrolls data, shifting focus toward the upcoming US inflation report.
Here is what you need to know on Tuesday, September 8:
The US Dollar Index (DXY) extended its downtrend, retesting multi-day lows beneath the 99.00 threshold. Upcoming economic releases include the NFIB Business Optimism Index, followed by the ADP Employment Change Weekly and Consumer Inflation Expectations.
EUR/USD maintained its upward trajectory within the upper bounds of its recent range, holding above the 1.1600 level, supported by selling pressure on the US Dollar. German Balance of Trade data will be the primary domestic catalyst, alongside a speech by ECB policymaker Elderson.
GBP/USD aligned with other risk-sensitive currencies, opening the week on a positive note, though upside momentum encountered strong resistance near the 1.3550 mark. The BRC Retail Sales Monitor will be the only notable release from the UK.
Renewed expectations of further monetary tightening by the Bank of Japan have bolstered the Japanese Yen, pushing USD/JPY to seven-month lows near the 154.00 level. Key Japanese data releases include Average Cash Earnings, the Current Account balance, Bank Lending figures, and the final Q2 GDP Growth Rate.
AUD/USD extended its multi-week rally, reaching its highest levels since mid-May above 0.7220. Australian economic indicators to watch include the Westpac Consumer Confidence index, followed by Private House Approvals, Building Permits, the NAB Business Confidence gauge, and remarks from RBA officials Hunter and Hauser.
USD/CNH retreated to the 6.7000 level—a threshold last seen in January 2023—bouncing off recent lows despite reversing three consecutive daily declines, as the currency remains on track for a third consecutive monthly loss. Chinese Balance of Trade data will be the key event on the economic calendar.
WTI crude oil prices surged to three-month highs above the $93.00 per barrel mark, driven by escalating geopolitical tensions between the US and Iran.
Gold experienced minor losses, trading just above the $4,400 per troy ounce mark, as caution prevailed ahead of Friday’s US inflation report. Additionally, growing bets on further Fed rate hikes have capped the precious metal’s upside as market participants continue to digest the robust Nonfarm Payrolls data.
