Forex Today: Investors’ attention shifts to US data, Powell... and Super Tuesday

The greenback once again suffered disheartening prints from US fundamentals, although speculation for a rate cut by the Fed in June appears firm. On another note, Gold climbed to record highs as well as Bitcoin.

Here is what you need to know on Wednesday, March 6:

The greenback retreated for yet another session and kept the price action around the USD Index (DXY) depressed well below the 104.00 level. On March 6, all the attention will be on Chair Powell’s first testimony, followed by the ADP report.

EUR/USD maintained the bullish bias in place and rose to two-week highs near 1.0880. In the domestic calendar, the Balance of Trade in Germany and Retail Sales in the broader Euroland are due on March 6.

GBP/USD could not sustain an earlier move to multi-week highs near 1.2730, closing the session with marginal gains instead. On March 6, the S&P Global Construction PMI will be the sole release across the Channel.

USD/JPY left behind two consecutive daily advances and broke below the key 150.00 zone. Next on tap in the Japanese docket will be the usual weekly Foreign Bond Investment figures and the speech by BoJ Nakagawa on March 7.

AUD/USD traded on the defensive and added to Monday’s pessimism, briefly revisiting the 0.6480 region. The GDP Growth Rate during the October–December period takes centre stage in Oz on March 6. 

On March 6, the Bank of Canada is expected to keep its policy rate unchanged, seconded by the Ivey PMI and the press conference by Governor T. Macklem. USD/CAD, in the meantime, rose further and trespassed the 1.3600 hurdle, although it gave away some of those gains afterwards.

WTI prices remained on the back foot as news of extra reforms in China and the country’s planned GDP target failed to ignite some optimism among traders.

Gold prices advanced further and printed an all-time high past the $2,140 mark per troy ounce on the back of increasing bets of rate cuts by the Fed. Silver rose to fresh tops north of the $24.00 mark per ounce, although the industrial metal later succumbed to renewed selling impetus.

Outside the FX universe and moving into the political arena, the US Super Tuesday results are expected to be one of the salient events on Wednesday. On Super Tuesday, the highest number of states will host presidential primaries or caucuses, as more than one-third of all delegates available for both the Republican and Democratic nominations will be up for grabs. President J. Biden stands as the frontrunner for the Democratic nomination, facing no significant primary challenge. Meanwhile, former President D. Trump maintains a lead over former Un Ambassador Nikki Haley in the race for the Republican nomination.