Forex
The Australian Dollar (AUD) trades flat against the US Dollar (USD) on Wednesday, with AUD/USD easing back after an initial advance triggered by Australia’s latest inflation data. At the time of writing, the pair is trading around 0.6738, holding near 15-month highs.
US Dollar (DXY) Analysis: After a volatile correction, the Greenback stabilizes as the dedollarization narrative faces reality. We analyze how economic resilience and the "Return of US Freedom"—sparked by recent geopolitical wins—are reshaping the DXY's path for the year ahead.
Forex
NZD/USD trades around 0.5790 on Wednesday at the time of writing, up 0.10% on the day, supported by a mix of macroeconomic factors despite a mixed flow of news from the United States (US).
Forex
EUR/USD is practically flat, trading near 1.1690 at the time of writing, with the bearish bias from December highs intact.
Forex
EUR/GBP trades around 0.8660 on Wednesday at the time of writing, virtually unchanged on the day, highlighting a market lacking a clear trend. The pair remains confined to narrow ranges as investors digest the latest macroeconomic data from the Eurozone while waiting for new cues from the UK side.
Commodities
Euro Area inflation cools to 2.0%, hitting the ECB target, but German retail sales decline unexpectedly. Asia's stock rally stalls amid profit-taking and rising China-Japan tensions over a dual-use export ban. European stocks are steady. Gold and other precious metals fall as the US dollar holds firm. All eyes are now on US jobs data (JOLTS/ADP), which is forecast to be weak and could impact the dollar.
Forex
AUD/USD has broken above a descending trend line and the top of its multi-month range, signaling renewed upside momentum. A pullback toward 0.6650 may offer support, with gains potentially extending toward 0.6855–0.6940, Société Générale's FX analysts note. .
Forex
EUR is likely to edge lower, but any decline is unlikely to reach the major support at 1.1650. In the longer run, bias remains tilted to the downside, but EUR must close below 1.1680 before a move toward 1.1650 can be expected, UOB Group's FX analysts Quek Ser Leang and Peter Chia note.
Forex
The Eurostat will publish the preliminary Eurozone Harmonized Index of Consumer Prices (HICP) data for December later on Wednesday at 10:00 GMT.
Forex
Here is what you need to know on Wednesday, January 7:
