Forex Today: Markets’ attention remains on data and rate cut bets

The Greenback managed to regain some composure and partially reverse steep losses recorded in the last couple of days, while stocks worldwide rebounded on the back of shrinking pessimism among market participants. The RBA kept the OCR unchanged, as expected, although it came up with a hawkish message.

Here is what you need to know on Wednesday, August 7:

The USD Index (DXY) rose around a big figure from Monday’s sharp pullback to the 102.00 region, helped by renewed sentiment and the marked bounce in US yields. On August 7, weekly Mortgage Applications tracked by MBA are due, seconded by the EIA’s report on US crude oil inventories.

EUR/USD came under pressure and set aside two sessions in a row of gains, including a move beyond the psychological 1.1000 hurdle. Germany’s Balance of Trade results will only be published on the domestic docket on August 7.

Extra weakness saw GBP/USD add to Monday’s losses and retreated to five-week lows near the 1.2670 region. The UK calendar is empty on August 7.

USD/JPY climbed beyond 146.00 and reversed a multi-day pullback amidst some renewed selling pressure hitting the yen. The preliminary Coincident Index and Leading Economic Index will be published on August 7.

After bottoming out in YTD lows near 0.6350 on Monday, AUD/USD regained some upside traction and reclaimed the area north of the 0.6500 barrier underpinned by another hawkish hold by the RBA. The Ai Group Industry Index is only due in Oz on August 7.

Chinese demand jitters weighed on traders’ sentiment once again, keeping WTI prices depressed around $73.00 amidst the ongoing multi-day bearish leg.

Gold prices retreated further and retested the $2,380 mark per ounce troy in response to the marked rebound in the dollar and higher US yields. Silver prices added to Monday’s retracement and approached recent lows near $26.50 per ounce.