This is what you need to know to operate the tuesday august 16:
Recession concerns gripped financial markets earlier in the week, boosting the safe haven dollar across the currency board. The dollar trimmed gains during US trading hours as Wall Street managed to make modest gains but remained close to its intraday highs.
The news from China encouraged the atmosphere of discouragement. Retail sales in the country rose 2.7% year-on-year in July, while industrial production rose 3.8% in the same period, both missing market expectations. At the same time, the central bank unexpectedly cut a key interest rate and drained liquidity. In addition, China has announced more moves around Taiwan after a new delegation of US lawmakers met with Taiwanese President Tsai Ing-wen.
Meanwhile, the EU working on a nuclear deal with Iran, from which a response is expected at the end of the day. The European Union wants to bring back the Tehran nuclear deal amid energy shortages caused by the Ukraine war. News on this matter is likely to come early in the Asian session.
The minutes of the RBA meeting will be published below.
The pair EUR/USD trades around 1.0160, while the GBP/USD around 1.2050. Commodity-linked currencies decline, with the AUD/USD trading at 0.7020 and the USD/CAD around 1.2910.
The Prayed it is among the weakest safe-haven rivals to the USD, dipping as low as $1,779 a troy ounce. The USD/CHF pair is trading above 0.6460, while the USD/JPY is trading around 133.20.
Crude oil prices fell sharply, recovering modestly before the close. The barrel of WTI is currently around 88.90 dollars.
Source: Fx Street
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