The GBP/USD pair trades with a negative bias below mid-1.3600s during the Asian session on Wednesday, eroding a part of the previous day's strong gains.

The Euro (EUR) continues to trade in a tight range at around 1.1660 against the US Dollar (USD) during the Asian trading session on Wednesday.

NZD/USD depreciates after registering modest gains in the previous day, trading around 0.5960 during the Asian hours on Wednesday.

The USD/JPY pair loses ground to near 158.90 during the Asian trading hours on Wednesday. The US Treasury’s bond buyback programs weigh on the US Dollar (USD) against the Japanese Yen (JPY).

The AUD/USD pair attracts buyers for the second straight day and climbs to the 0.7170 area following the release of Australian consumer inflation figures during the Asian session on Wednesday.

The USD/CAD pair edges higher during the Asian session on Wednesday, though it remains confined within the previous day’s range. Spot prices currently trade around mid-1.3800s as traders now look to the US Personal Consumption Expenditures (PCE) Price Index for some meaningful impetus.

On Wednesday, the People’s Bank of China (PBOC) sets the USD/CNY central rate for the trading session ahead at 6.7829 compared to the previous day's fix of 6.7852 and 6.7166 Reuters estimate.

The EUR/USD pair flatlines near 1.1675 during the early Asian trading hours on Wednesday. The US Treasury's decision to expand its long-term bond buyback program could weigh on the US Dollar (USD) against the Euro (EUR).

The Aussie Dollar advanced on Tuesday, gaining over 0.20% as the Greenback edged lower, amid minutes from the Reserve Bank of Australia (RBA)'s last meeting suggesting the board was close to raising rates. At the time of writing, the AUD/USD trades at 0.7163, after bouncing off daily lows of 0.7137.

USD/JPY trades just above 159.00 late on Tuesday, August 25, holding a gain of under a tenth of a percent across a session that has covered 44 pips between a floor near 159.00 and a ceiling short of 159.50.

GBP/USD trades near 1.3650 late on Tuesday, August 25, up around a tenth of a percent on a session that has covered barely 33 pips between a floor just above 1.3600 and a ceiling a shade over 1.3650.

The Australian Bureau of Statistics (ABS) will publish the July Consumer Price Index (CPI) on Wednesday at 01:30 GMT. The report is expected to show that inflation rose 3.2% from a year earlier, easing from the 3.8% posted in June.

The GBP/JPY surpassed a downtrend resistance line and reclaimed the 217.00 level on Tuesday, as the Japanese Yen weakened while Sterling pushed to a new three-week high at 217.48. At the time of writing, the cross-pair trades at 217.31, up 0.20%.

The Mexican Peso holds firm near 10-year highs against the US Dollar on Tuesday, as the USD/MXN pair sits below the 16.95 level while investors digest US economic data and recent developments between the US and Iran. The exotic pair trades at 16.94, virtually unchanged.

NZD/USD climbed to around 0.5980 Tuesday, near its highest level since June 1 as a softer US Dollar (USD) and firm Reserve Bank of New Zealand (RBNZ) rate-hike expectations powered the Kiwi higher.

Societe Generale analysts highlight that the Korean Won (KRW) has gained 12% versus the Dollar year-to-date, with USD/KRW falling from around 1560 in June to below 1380.

USD/CAD edges lower on Tuesday, with the Canadian Dollar (CAD) drawing support from a weaker US Dollar (USD) as traders also assess the latest tit-for-tat tariff measures between the United States (US) and Canada.

USD/JPY extends its sideways movement below the 160.00 mark on Tuesday, holding modest gains despite a softer US Dollar (USD). The weaker Greenback has failed to lift the Japanese Yen (JPY), which is underperforming its major peers. At the time of writing, the pair trades around 159.30.

USD/CAD trades around 1.3835 on Tuesday at the time of writing, down a modest 0.07% on the day. The pair lacks a clear direction as both the US Dollar (USD) and the Canadian Dollar (CAD) face headwinds.

The Pound Sterling consolidates near a six-month high of 1.3675 as Middle East headlines improve risk appetite, while investors await the release of crucial US economic data and the speech by Federal Reserve Chair Kevin Warsh at Jackson Hole. The GBP/USD trades at 1.3638, virtually unchanged.

AUD/USD steadies around the mid 0.7100s at the time of writing on Tuesday, clawing back most of the previous day's modest losses.

MUFG analysts Derek Halpenny and Abdul-Ahad Lockhart state that the Mexican Peso continues to benefit from low FX volatility and strong carry demand, with USD/MXN breaking below 17.00 for the first time since June 2024.

Scotiabank strategists Shaun Osborne and Eric Theoret note USD/JPY trading in a relatively flat range between 158.00 and the mid-159s as the Japanese Yen (JPY) underperforms most G10 currencies.

Scotiabank strategists Shaun Osborne and Eric Theoret report EUR/USD consolidating in the mid to upper 1.16s after stronger German IFO and Gross Domestic Product (GDP) data, which should bolster European Central Bank (ECB) confidence ahead of the September 10 meeting.

EUR/USD holds modest gains on Tuesday as the latest Middle East developments fail to trigger a strong market reaction, while the US Dollar (USD) struggles to recover from last week’s sell-off sparked by the US Treasury’s decision to increase buybacks of longer-dated government securities.

Scotiabank strategists Shaun Osborne and Eric Theoret describe USD/CAD trading close to their fair value estimate around 1.3842 as the Canadian Dollar (CAD) reacts to trade headlines and weaker Oil prices.

NZD/USD edges slightly higher on Tuesday and trades around 0.5965 at the time of writing, up 0.08% on the day.

Rabobank's Senior FX Strategist Jane Foley discusses the British Pound's (GBP) recent performance, noting it is currently the top G10 currency on a 1‑day view but only middling over longer horizons.

GBP/JPY extends its steady recovery on Tuesday and has now recouped almost all the losses triggered by the joint US-Japan intervention in late July. The intervention was aimed at curbing excessive weakness in the Japanese Yen (JPY) after USD/JPY climbed above 160 to a forty-year high.

ING’s Francesco Pesole highlights escalating US-Canada trade tensions, with new US tariffs on Canadian autos and parts announced for early next year.