United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note AUD/USD extended its consolidation slightly higher, closing at 0.7165 as short-term momentum improves.

ING’s Chris Turner reports that the National Bank of Hungary cut its policy rate by 25bp to 5.50%, with Chief Economist Peter Virovacz seeing a 4.75% terminal rate.

EUR/CAD extends its gains for the third successive day, trading around 1.6180 during the European hours on Wednesday. The currency cross gains ground as the commodity-linked Canadian Dollar (CAD) faces headwinds due to falling crude oil prices.

Chris Turner at ING highlights that Eurozone data continue to surprise positively and ECB’s Isabel Schnabel now sees growth risks possibly to the upside.

The United States (US) Bureau of Economic Analysis (BEA) is expected to publish the Personal Consumption Expenditures (PCE) Price Index data for July on Wednesday, at 12:30 GMT. 

Deutsche Bank’s Early Morning Reid team, including Peter Sidorov and Jim Reid, note that Brent Oil has reversed more than half of its recent 13% rally as Middle East de-escalation headlines weigh on energy markets.

Commerzbank’s Tatha Ghose reports that Hungary’s central bank, Magyar Nemzeti Bank (MNB), cut its base rate to 5.50% but avoided pre-committing to further easing, stressing that September’s Inflation Report will guide policy. The bank will monitor global rate hikes, could limit the scope.

According to sources, the European Central Bank (ECB) is all set to hike its key policy rates at the September policy meeting, RTE reported. Sources also said that the central bank has no appetite to raise interest rates again after a hike next month.

Deutsche Bank notes that Nvidia’s earnings have become a major macro catalyst, although the impact of positive surprises has faded in recent quarters.

Volkmar Baur at Commerzbank notes that the Reserve Bank of Australia (RBA) is in wait-and-see mode after three rate hikes, assessing how inflation and the labor market evolve. July Consumer Price Index (CPI) eased to 3.5% but missed expectations, with trimmed-mean inflation stuck at 3.6%.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann report EUR/USD broke out of its recent tight range, closing slightly higher near 1.1675 as tentative upside momentum emerges.

European Central Bank (ECB) Executive Board member Isabel Schnabel said that inflation is unlikely to return to target over the medium term, and therefore further tightening will be necessary, Bloomberg reported on Wednesday. 

Asian stock markets reflect broader strength on Wednesday, as oil prices have fallen further on renewed hopes of the Strait of Hormuz, a vital passage for almost 20% of global energy supply, reopening.

USD/IDR remains stronger for the second successive day, trading around 17,760 during the Asian hours on Tuesday. The pair continues to hold its ground while the Indonesian Rupiah (IDR) faces ongoing pressure from a cautious market sentiment and persistent external headwinds.

The US Dollar Index (DXY), an index of the value of the US Dollar (USD) measured against a basket of six world currencies, currently trades near 99.00 in the early European trading hours on Wednesday.

Japan's Economy Minister Minoru Kiuchi said on Wednesday that he expects consumer prices to gradually rise amid the Middle East situation.

AUD/JPY gains ground for the second consecutive day, trading around 114.20 during the Asian hours on Wednesday.

According to August 17-24 survey in a Reuters poll, 57% of economists expected the Bank of Japan (BoJ) to raise its interest rate in September, a sharp turnaround from a July poll.

West Texas Intermediate (WTI) oil price extends its losses for the third consecutive day, trading around $80.10 per barrel during the Asian hours on Wednesday.

Canada said that it will implement 50% retaliatory tariffs on $20bn worth of US goods, following through on Prime Minister Mark Carney’s vow to match US President Donald Trump’s duties “dollar for dollar,” the Guardian reported.

OCBC’s Sim Moh Siong and Christopher Wong expect USD/SGD to consolidate as earlier Singapore Dollar (SGD) gains face a modest US Dollar (USD) rebound and position unwinding ahead of United States (US) core Personal Consumption Expenditures (PCE) Price Index data and Jackson Hole.

OCBC’s Sim Moh Siong and Christopher Wong highlight that Thai Baht (THB) has rallied to a two‑month high on softer US Dollar (USD), lower Oil prices, strong electronics exports and Gold-related flows.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann maintain a negative stance on USD/CNH, noting a softened underlying tone even as recent price action stayed relatively quiet. Intraday, they see scope for a modest drift lower while keeping 6.7150 as key support.

Commerzbank’s Charlie Lay and Dr. Henry Hao note that USD/SGD has eased from 1.2800 to around 1.2700 as the softer US Dollar (USD) and global risk sentiment dominate.

US yields edge lower across the whole curve on Tuesday, following suit.

OCBC’s Sim Moh Siong and Christopher Wong note that reports of potential US tariffs on Chinese goods and the PBoC’s resistance to rapid Renminbi (RMB) gains are likely to limit further downside in USD/CNH.

United Overseas Bank’s (UOB) Quek Ser Leang and Lee Sue Ann note that USD/SGD remains under mild downward pressure but short-term momentum is flat, keeping the pair in a tight intraday band around 1.2700.

United States 2-Year Note Auction dipped from previous 4.315% to 4.204%

ING’s Carsten Brzeski highlights how upcoming state elections in Saxony-Anhalt, Mecklenburg-Vorpommern and Berlin could reshape German politics and indirectly affect the economy.

Societe Generale’s Dev Ashish argues that Mexico could benefit from tensions between the US and Canada, but warns that uncertainty around USMCA may limit the upside.