In a turbulent week for global markets, the US Dollar is experiencing softness amid a recent sell-off in US Treasury yields. This development has contributed to a fall in the USD/JPY, with the pair potentially testing 153.00 during Wednesday's Asian trading session. Meanwhile, China's Caixin Services PMI delivered disappointing results, further pressuring the Chinese Yuan, which is currently slumping. Simultaneously, the Australian Dollar remains on the back foot, trading near 0.6250 as traders assess the implications of ongoing economic tensions.
The policy divergence between the Reserve Bank of Australia (RBA) and the Federal Reserve is also influencing currency movements. While the US-China trade war fears persist, President Donald Trump has agreed to delay the implementation of 25% tariffs on Canada and Mexico for one month, providing temporary relief to markets. However, traders remain cautious as they await US jobs data and its potential impact on market dynamics.
In Japan, growth in real wages during December has bolstered support for the Japanese Yen. The Bank of Japan (BoJ) may consider further rate hikes in response to this economic growth, adding additional strength to the currency. Investors are closely watching these developments as they influence the USD/JPY pair.
Gold prices are holding steady near a record-setting rally at $2,850, driven by a mix of factors including ongoing US-China trade talks and anticipation surrounding US private sector employment data. Traders are keenly observing these events for insights into future gold price movements.
In the cryptocurrency market, Bitcoin, Ethereum, and Ripple are hovering around key levels after struggling to maintain recoveries from recent declines. The volatile nature of digital currencies continues to capture the attention of investors worldwide.