The AUD/USD pair struggles to capitalize on the previous day's bounce from the 0.7120 region, or a nearly two-week low, and oscillates in a range during the Asian session on Thursday.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Thursday at 6.7807 compared to the previous day's fix of 6.7829 and 6.7167 Reuters estimate.

The GBP/USD pair consolidates below the 1.3500 psychological mark during the Asian session on Thursday and remains close to a three-week low, touched the previous day.

AUD/NZD spent Wednesday pushing at a ceiling that has held since 2013, running from near 1.2100 to a high short of 1.2300 and trading just above 1.2250 into the European afternoon.

The Pound Sterling collapses versus the Japanese Yen as growing “speculation” of an intervention in the FX markets witnessed the Yen appreciating versus most G8 FX currencies. The GBP/JPY trades with losses of more than 1.10%, at 214.08.

The Reserve Bank of New Zealand (RBNZ) raised its policy rate on Wednesday and the currency fell almost 1.7% from top to bottom on the day it happened.

The Australian Dollar advanced on Wednesday versus the US Dollar after economic data in the US revealed the labour market weakened slightly, while the Greenback dipped on intervention speculation in the FX markets.

The Yen had its best session in weeks on Wednesday and it still looks like a losing position.

Sterling has spent Wednesday handing back the last of its August rally, with GBP/USD trading just under 1.3500 after a session low a shade beneath 1.3475.

The USD/CHF advances some 0.13% on Wednesday as the Greenback holds within familiar levels, after depreciating versus the Yen amid speculation of an intervention in the FX markets. This dragged the pair from around five-week highs to the 0.8120 area.

The Pound Sterling fell by some 0.11% and hit a three-week low against the Greenback on Wednesday, even though the US Dollar Index (DXY) is in red territory, following US jobs data that were below estimates but signalled some cooling in the labour market.

The Bank of Canada (BoC) left its overnight interest rate unchanged at 2.25%, as widely anticipated, but delivered a more cautious message as inflation risks increased and the recovery became harder to assess.

Societe Generale strategists highlight that the Indian Rupee’s (INR) strong start to September is reflected in a move back below the 100dma, raising questions about whether Reserve Bank of India (RBI) intervention has helped the currency turn a corner despite a hawkish Fed and higher Oil prices.

Scotiabank strategists Shaun Osborne and Eric Theoret note EUR/USD has slipped to the upper 1.15s, with sentiment turning bearish despite supportive yield spreads. They link the renewed deterioration to rising Oil prices and concerns over Euro area terms of trade.

Brown Brothers Harriman’s (BBH) Elias Haddad notes AUD/USD fell toward 0.7125 on broad US Dollar (USD) strength, even as Australia’s Q2 GDP beat expectations at 0.4% q/q and 2.1% y/y.

The Euro tumbles against the Japanese Yen on Wednesday amid growing speculation that Japanese authorities might intervene in the FX markets, as most related Yen pairs collapsed to fresh two-week lows, with the EUR/JPY bottoming at around 183.64, after reaching a high of 185.75.

GBP/JPY falls nearly 1% on Wednesday as the Japanese Yen (JPY) strengthens across the board. At the time of writing, the cross trades around 214.43 after hitting an intraday low near 213.70, its lowest level since August 10.

ING’s Chris Turner highlights growing headwinds for the Euro as higher energy prices and a more hawkish Federal Reserve push EUR/USD lower.

USD/CAD falls to around 1.3875 on Wednesday, down 0.15% on the day, following the Bank of Canada’s (BoC) monetary policy decision. The Canadian Dollar (CAD) strengthens against the US Dollar (USD) after the central bank leaves its policy rate unchanged at 2.25%, in line with market expectations.

UOB’s Lee Sue Ann notes that the Reserve Bank of New Zealand (RBNZ) raised the Official Cash Rate (OCR) to 2.75% and kept a tightening bias, stressing the need to prevent fuel-driven inflation from becoming entrenched.

The Japanese Yen (JPY) outperforms its major peers on Wednesday, with USD/JPY falling nearly 0.90% on the day as hawkish Bank of Japan (BoJ) expectations support the Japanese currency.

Brown Brothers Harriman’s (BBH) Elias Haddad observes USD/JPY testing 160.00 as hawkish Bank of Japan comments briefly supported the Japanese Yen (JPY).

EUR/USD consolidates its daily losses during American trading hours on Wednesday as the US Dollar (USD) holds firm, supported by hawkish Federal Reserve (Fed) expectations and escalating tensions in the Middle East.

BNY’s Geoff Yu notes that Canadian Dollar (CAD) positioning remains weak ahead of the Bank of Canada (BoC) decision, with USD/CAD dominating flows and cross-currency activity surprisingly limited.

Brown Brothers Harriman’s (BBH) Elias Haddad reports the New Zealand Dollar (NZD) underperformed after the Reserve Bank of New Zealand (RBNZ) delivered a 25 bps hike to 2.75% but signaled reduced need for further tightening.

ING’s Chris Turner notes that USD/JPY is slightly lower after BoJ hawk Hajime Takata signalled the possibility of a 50bp September hike or back-to-back moves.

EUR/GBP edges higher on Wednesday, extending its advance for the third consecutive day. At the time of writing, the cross trades around 0.8585, close to the upper boundary of the narrow consolidation range that has been in place since late July.

Commerzbank’s Michael Pfister expects the Bank of Canada to hold its key rate at 2.25%, a move he says is fully priced with only a small chance of a hike.

BNY’s Geoff Yu reports that European Central Bank (ECB) Governing Council member Joachim Nagel has strongly signaled a September rate hike as Eurozone inflation stays above target and activity proves resilient.

USD/JPY retreats on Wednesday and trades around 159.65 at the time of writing, down 0.33% on the day.