The Japanese Yen (JPY) trades close to its two-week low against the US Dollar (USD) in the Asian trading session on Tuesday at around 159.50. The USD/JPY pair is under pressure even as financial markets are confident about a Bank of Japan (BoJ) interest rate hike in the September meeting.

The NZD/USD pair declines to around 0.5895 during the Asian trading hours on Tuesday. Weaker-than-expected Chinese Retail Sales and Industrial Production data weigh on the China-proxy New Zealand Dollar (NZD) against the US Dollar (USD). 

Silver price (XAG/USD) declines after two days of gains, trading around $65.60 per troy ounce during the Asian hours on Tuesday.

The USD/CAD pair struggles to build on the overnight bounce from the 200-day Simple Moving Average (SMA) support near the 1.3845 region, or the lowest level since June 3, and is seen consolidating during the Asian session on Tuesday.

The GBP/USD pair gains momentum to around 1.3550 during the early Asian trading hours on Tuesday. The US Dollar (USD) softens against the British Pound (GBP) as cooler US inflation data have prompted traders to reduce bets on a US Federal Reserve (Fed) rate hike.

The People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead on Tuesday at 6.7905 compared to the previous day's fix of 6.7873 and 6.7452 Reuters estimate.

The EUR/USD pair holds steady around the 1.1575-1.1580 region during the Asian session on Tuesday and, for now, seems to have stalled the previous day's modest pullback from a two-month top.

AUD/USD extends its gains for the third successive day, trading around 0.7110 during the Asian hours on Tuesday. The currency pair continues to appreciate as the US Dollar (USD) remains subdued amid fading expectations for further rate hikes by the Federal Reserve (Fed).

The Aussie Dollar trades near two-month highs of 0.7129, supported by a weaker US Dollar, amid a scarce economic docket in the US, following last week’s softer Retail Sales data. The AUD/USD trades at 0.7106, up 0.32%.

The GBP/JPY cross-pair is poised to finish Monday’s session with gains of over 0.14% as traders prepare for the beginning of Tuesday’s Asian session. The cross-pair has climbed above the 50-day Simple Moving Average (SMA) at 215.52, often seen as a breakout that opens the door to further upside.

USD/JPY sat near 159.50 through Monday inside a 75-pip range for a net gain of 10 pips, on the day the Dollar Index broke beneath its 200-day Exponential Moving Average (EMA) to its weakest level since June.

The shared currency clings to minimal gains versus the US Dollar on Monday, edging up by some 0.08% after reaching a month-and-a-half high at 1.1614, then reversing course and falling beneath 1.1600, poised to end the session near the low of the day (LOD) of 1.1561.

GBP/USD cleared 1.3550 on Monday for the first time in three months, printed the highest level of the window just above it and handed the entire advance back within hours for a net gain under 10 pips. Sterling did none of the work behind that number.

NZD/USD is close to flat on the day, holding the 0.5900 region and unable to join the broader move against a soft US Dollar (USD).

USD/JPY is close to flat on Monday, holding the mid-159.00s region after a soft Japanese growth report overnight failed to shift it in either direction. The pair has been drifting between support at 158.60 and resistance just above 159.50 for five straight days. This is a standoff, not a trend.

The Mexican Peso weakens against the US Dollar on Monday, with USD/MXN reclaiming the 17.00 level, even though the latest US inflation and Retail Sales data disappointed investors. The USD/MXN trades at 17.03, after hitting a weekly low of 16.99.

OCBC’s Sim Moh Siong and Christopher Wong highlight that USD/CNH is trading near recent lows as Chinese policymakers allow a measured pace of Renminbi (RMB) appreciation while resisting an overly rapid move via a sizeable fixing premium.

USD/CHF rebounds on Monday as the US Dollar (USD) recovers from its early losses. At the time of writing, the pair trades around 0.8112 after touching an intraday low of 0.8072, its lowest level in over a week.

EUR/USD trims earlier gains on Monday as the US Dollar (USD) shows signs of stabilization after opening the week under selling pressure. At the time of writing, the pair trades around 1.1580 after touching an intraday high of 1.1614, its highest level since June 17.

EUR/GBP is holding a narrow band around the mid-0.8500s with little conviction in either direction. At the time of writing, the cross is close to flat on the day.

The Pound Sterling registers modest gains of 0.14% on Monday as investors digest softer-than-expected US inflation data and brace for the release of crucial UK jobs and inflation data. The GBP/USD trades at 1.3552 after bouncing off daily lows of 1.3524.

USD/JPY rebounds on Monday after coming under selling pressure earlier in the day, as the Japanese Yen (JPY) struggles to gain traction despite a weaker US Dollar (USD). At the time of writing, the pair trades around 159.25, recovering from an intraday low of 158.85.

AUD/USD extended its recovery on Monday, pushing to fresh 10-week highs and holding near the 0.7100 zone. At the time of writing, the pair is 0.40% up for the day, driven almost entirely by a broadly weak US Dollar (USD) rather than anything positive out of Australia.

Scotiabank strategists Shaun Osborne and Eric Theoret note British Pound (GBP) is underperforming core European peers but has still reached a three‑month high against the US Dollar (USD).

Scotiabank strategists Shaun Osborne and Eric Theoret report the Euro (EUR) is firming as Eurozone economic resilience and narrowing yield spreads versus the US support EUR/USD.

BNY’s Geoff Yu highlights that weak Japanese Gross Domestic Product (GDP) data and rising JGB yields are undermining confidence in the Bank of Japan’s ability to sustain a stronger Yen.

USD/CAD falls to its lowest level since June 3 on Monday as the US Dollar (USD) stays under pressure, while hotter-than-expected Canadian inflation data provide additional support to the Canadian Dollar (CAD). At the time of writing, the pair trades around 1.3852.

EUR/CAD edges higher on Monday, trading around 1.6070 at the time of writing, up 0.11% on the day. The pair maintains a positive bias despite a stronger-than-expected acceleration in Canadian inflation, which provides some support to the Canadian Dollar (CAD).

NZD/USD extends its advance on Monday and trades around 0.5915 at the time of writing, up 0.37% on the day.

GBP/USD edges higher on Monday as fading expectations of an imminent Federal Reserve (Fed) rate hike drag the US Dollar (USD) lower and lift the British Pound (GBP) to its highest level since May 12.