The key event in the Asian session will be the Reserve Bank of Australia meeting. Later in the day, Switzerland will report consumer inflation, and in the US, the JOLTS Job Openings data will be released.
Here is what you need to know on Tuesday, October 3:
The US Dollar opened the week on a strong note, resuming the rally that started on Friday. The US Dollar Index rose above 107.00, posting its highest daily close since November. Higher US yields, cautious market sentiment, and positive US data continue to support the Greenback's rally.
The US 10-year yield reached 4.70% for the first time since 2007. US data came in above expectations, with the ISM Manufacturing PMI at 49, surpassing the market consensus of 47.7. On Tuesday, the JOLTS Job Openings report is due. Later in the week, more US employment data will be released with the ADP report and the Nonfarm Payrolls.
Analysts at Wells Fargo on US data:
Manufacturing activity contracted at the slowest pace in nearly a year according to the September ISM. Recent data signal some relief in the sector, while higher oil prices point to potential upside risk ahead.
EUR/USD broke below 1.0500, reaching fresh year-to-date lows. The pair remains under pressure after sustaining the bearish trend. A potential support level lies around 1.0460. The strong US Dollar also weighed down GBP/USD, which broke below 1.2100, hitting three-month lows.
USD/JPY continues to gradually approach the 150.00 level amid higher yields. A break above 150.00 could trigger volatility and speculations about intervention from Japanese authorities.
AUD/USD extended its reversal from 0.6500 and dropped to 0.6360. The Reserve Bank of Australia (RBA) will announce its monetary policy decision on Tuesday, with no change expected. This will be the first meeting with Michele Bullock as governor.
The kiwi fell versus the US Dollar; however, it outperformed the AUD and CAD. NZD/USD pulled back to 0.5950 after failing to hold above 0.6000 but remained above the 20-day Simple Moving Average (SMA). The Reserve Bank of New Zealand (RBNZ) will hold its monetary policy meeting on Wednesday.
USD/CAD is back at September highs, slightly below the 1.3700 area, which is a key resistance level. A break higher would clear the way for more gains. Canada will report employment data on Friday.
Metals had another terrible day, with Gold falling more than $20 to $1,828, the lowest level since March, and Silver collapsing by more than 5% to $21.00. XAG/USD lost more than 10% from Friday's high.
Like this article? Help us with some feedback by answering this survey:
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD extends recovery beyond 1.0400 amid Wall Street's turnaround
EUR/USD extends its recovery beyond 1.0400, helped by the better performance of Wall Street and softer-than-anticipated United States PCE inflation. Profit-taking ahead of the winter holidays also takes its toll.
GBP/USD nears 1.2600 on renewed USD weakness
GBP/USD extends its rebound from multi-month lows and approaches 1.2600. The US Dollar stays on the back foot after softer-than-expected PCE inflation data, helping the pair edge higher. Nevertheless, GBP/USD remains on track to end the week in negative territory.
Gold rises above $2,620 as US yields edge lower
Gold extends its daily rebound and trades above $2,620 on Friday. The benchmark 10-year US Treasury bond yield declines toward 4.5% following the PCE inflation data for November, helping XAU/USD stretch higher in the American session.
Bitcoin crashes to $96,000, altcoins bleed: Top trades for sidelined buyers
Bitcoin (BTC) slipped under the $100,000 milestone and touched the $96,000 level briefly on Friday, a sharp decline that has also hit hard prices of other altcoins and particularly meme coins.
Bank of England stays on hold, but a dovish front is building
Bank of England rates were maintained at 4.75% today, in line with expectations. However, the 6-3 vote split sent a moderately dovish signal to markets, prompting some dovish repricing and a weaker pound. We remain more dovish than market pricing for 2025.
Best Forex Brokers with Low Spreads
VERIFIED Low spreads are crucial for reducing trading costs. Explore top Forex brokers offering competitive spreads and high leverage. Compare options for EUR/USD, GBP/USD, USD/JPY, and Gold.