Forex Today – Asian session: The dollar prepares to resume its decline

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What you need to know on Tuesday, September 7:

The dollar posted a modest recovery on a dull Monday. The US and Canadian markets closed as both countries celebrated Labor Day, exacerbating range trading. The US currency corrected higher but remains weak. Among its rivals, the pound is the worst performer, as investors see no reason to buy the pound.

The EUR / USD pair is currently trading around 1.1870, while the GBP / USD is hovering around 1.3830. Market participants see no reason to buy the latter, amid a poor macroeconomic calendar, but also because the UK continues to report increased coronavirus infections. In the last 24 hours, the figure reached 41,190 new cases of coronavirus and 45 new deaths. There are no restrictive measures on the agenda, but speculative interest dreads the possibility.

Commodity-linked currencies posted modest losses against their US rival, with AUD / USD currently trading in the 0.7430 price zone and USD / CAD at 1.2520. The USD / JPY pair remains stable below 110.00.

After hitting a high of $ 1,833.95 a troy ounce on Friday, the price of gold has been in retreat mode and is currently trading around 1,823. The shiny metal has yet to trim all of its post nonfarm payroll gains, but is trading below the 38.2% retracement of its March / June rally at 1,825.10. However, the XAU / USD is trading close, suggesting somewhat that the bulls may try again to finally clear the level.

Crude oil prices saw little action on Monday, finding slight support in the positive tone of European equities. WTI futures are below $ 69.00 a barrel.

The Reserve Bank of Australia will hold a monetary policy meeting on Tuesday. The Bank of Canada and the European Central Bank will also announce their decisions this week, with market participants focusing on the respective imbalances with the US Federal Reserve.

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