NZD/USD extends its gains for the second successive day, trading around 0.5950 during the European hours on Thursday. The pair appreciates as the New Zealand Dollar (NZD) gains on expectations of another rate hike from the Reserve Bank of New Zealand (RBNZ) in September.

Here is what you need to know on Thursday, August 20:

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann note AUD/USD retested recent highs near 0.7130 but momentum has not strengthened markedly.

The Japanese Yen (JPY) is down against its major currency peers on Thursday, with USD/JPY trading 0.22% higher at around 158.50 during the European trading session. The Japanese currency underperforms as the Trade Deficit widens due to elevated energy prices.

The Australian Dollar (AUD) remains under pressure against its major currency peers during the early European trading session on Thursday. As of writing, the antipodean is down 0.17% to near 0.7110 against the US Dollar (USD).

The USD/CAD pair declines to around 1.3790 during the early European trading hours on Thursday. The US Dollar (USD) weakens against the Canadian Dollar (CAD) as cooling US inflation dampens aggressive US Federal Reserve (Fed) policy expectations.

Silver (XAG/USD) is practically flat on Thursday, holding most of Wednesday’s gains, trading just above $67.00 at the European session opening.

OCBC strategists Sim Moh Siong and Christopher Wong note Indian Rupee (INR) remains under pressure despite broader US Dollar (USD) weakness, as high Oil prices and importer Dollar demand weigh on the currency.

United Overseas Bank’s Quek Ser Leang and Lee Sue Ann report that GBP/USD spiked to 1.3630 before easing, leaving short‑term conditions overstretched.

The EUR/JPY cross gathers strength to around 185.20 during the early European session on Thursday. The Japanese Yen (JPY) softens against the Euro (EUR) amid disappointing Japanese Gross Domestic Product (GDP) data.

Danske Research Team notes that EUR/USD jumped after the US Treasury increased buyback volumes of longer-dated US Treasuries, flattening the bond curve and pulling the 10-year yield below Tuesday’s peak.

The GBP/USD pair trades in positive territory around 1.3610 during the early European trading hours on Thursday.

USD/CHF gains ground after registering handsome losses in the previous day, trading around 0.8000 during the Asian hours on Thursday. The USD/CHF pair continues to hold its gains as the Swiss Franc (CHF) remains under pressure ahead of the upcoming domestic Trade Balance report.

The Indian Rupee (INR) snaps three-day losing streak against the US Dollar (USD) on Thursday.

The EUR/USD pair enters a bullish consolidation phase after touching its highest level since late May during the Asian session on Thursday. Bulls now await a move beyond the 1.1700 mark before placing fresh bets and positioning for an extension of an over a three-week-old uptrend.

USD/CAD extends its losses for the second successive day, trading around 1.3800 during the Asian hours on Thursday. The pair declines as the commodity-linked Canadian Dollar (CAD) receives support from improved oil prices.

The NZD/USD pair gains momentum to near 0.5950 during the Asian trading hours on Thursday. The pair holds near a two-and-a-half-month high, bolstered by hawkish Reserve Bank of New Zealand (RBNZ) tone and softer US inflation data.  

AUD/USD depreciates after registering over 0.5% gains in the previous day, trading around 0.7120 during the Asian hours on Thursday. The AUD/USD pair faces downward pressure as the Australian Dollar (AUD) slips in response to a weak domestic labor market report.

The AUD/JPY cross attracts some sellers following the release of a dismal Australian jobs report, though it lacks follow-through and holds above the weekly low touched the previous day.

The GBP/USD pair edges lower during the Asian session on Thursday and retreats further from its highest level since May 11, touched the previous day.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7808 compared to the previous day's fix of 6.7854 and 6.7196 Reuters estimate.

The EUR/USD pair posts modest losses around 1.1675 during the early Asian session on Thursday. The Euro (EUR) edges lower against the US Dollar (USD) after experiencing a sharp surge in the previous session.

The Aussie Dollar advances on Wednesday, up over 0.56%, as the US Dollar registers losses amid the US Treasury bond buyback and despite the release of hawkish Federal Reserve minutes from the July meeting. The AUD/USD trades at 0.7127.

The GBP/JPY retreats on Wednesday as the cross-pair fails to climb past 216.00  and fell beneath the 50-day Simple Moving Average (SMA) of 125.56. The cross-pair trades at 214.25 down 0.37%.

USD/JPY closed Wednesday 0.92% lower just above 158.00, the largest single-session decline since the early-August intervention, and Tokyo did not lift a finger for it.

GBP/USD closed Wednesday 0.53% higher just above 1.3600, its best close in three months, and the United Kingdom inflation report that opened the session had almost nothing to do with it. Sterling spent the London morning up barely twenty pips on the day.

The New Zealand Dollar (NZD) rallies against the US Dollar (USD), pushing north of the 0.5930 mark. The move is driven by broad weakness in the Greenback rather than anything out of New Zealand.

Australia will release the July monthly employment report on Thursday at 01:30 GMT. Ahead of the announcement, analysts anticipate a modest 15K increase in job creation, while the Unemployment Rate is expected to remain steady at 4.4%.

The shared currency gained over 0.85% during the North American session on Wednesday, even though the latest Federal Reserve minutes had a “hawkish” tone, with some participants, along with the three dissenters, suggesting that raising rates could be necessary if the disinflation process stalls.

Silver (XAG/USD) trades sharply higher on Wednesday, changing hands near $65.80. The metal is riding a broad rally across precious metals with Gold (XAU/USD) soaring toward $4,500.