FxWirePro: AUD/USD gains modestly as Geopolitical risks keep markets cautious 
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Market Roundup
• US CB Employment Trends Index (Aug) 108.53 , 107.76 previous
•US Consumer Inflation Expectations (Aug) 3.6%, 3.6% forecast, 3.6% previous
•US 3-Month Bill Auction 3.800%, 3.770% previous
•US 6-Month Bill Auction 3.890%, 3.885% previous
•US 3-Year Note Auction 4.474%, 4.291% previous
•US Consumer Credit (Jul) 18.06B, 11.90B forecast, 14.56B previous
Looking Ahead Economic Data (GMT)
•01:30 China CPI (MoM) (Aug) 0.3% forecast, -0.1% previous
•01:30 China PPI (YoY) (Aug) 3.6% forecast, 3.5% previous
•01:30 China CPI (YoY) (Aug) 0.8% forecast, 0.5% previous
Looking Ahead Events And Other Releases (GMT)
• No Events Ahead
Currency Forecast
EUR/USD : The euro edged higher against the U.S. dollar on Tuesday as investors focused on Thursday's expected rate hike by the European Central Bank and U.S inflation data later this week.Investors widely expect the ECB to raise interest rates by 25 basis points on Thursday, while markets are pricing in another hike by year-end and one more in 2027 despite limited appetite for further tightening.Market attention is also turning to a series of U.S. economic reports this week, including consumer and producer price data, ahead of the Federal Reserve’s September 15-16 policy meeting.In geopolitics, oil rose amid concerns about explosions near Iran facilities, while worries over Houthi attacks on Saudi cities subsided. Separately, the Trump administration announced additional Iran-related sanctions. Immediate resistance can be seen at 1.1641(38.2%fib), an upside break can trigger rise towards 1.1677(Aug 28th high).On the downside, immediate support is seen at 1.1612(Daily low), a break below could take the pair towards 1.1585(38.2%fib).
GBP/USD: The British pound edged higher on Tuesday as investors digested Bank of England Governor Andrew Bailey comments awaited US inflation data. Andrew Bailey said on Tuesday that the Bank of England’s next rate move remained uncertain and would hinge on economic and geopolitical developments.Bailey said investors were pricing more rate hikes than the BoE’s expected policy path warranted, with the risk premium reflecting fears of higher energy prices.BoE Deputy Governor Dave Ramsden and external MPC members Megan Greene and Alan Taylor also attended the hearing on Tuesday.Ramsden viewed domestic inflation risks as relatively contained, while Taylor said maintaining restrictive rates would provide a buffer against external shocks. Immediate resistance can be seen at 1.3685(23.6%fib), an upside break can trigger rise towards 1.3716(Higher BB).On the downside, immediate support is seen at 1.3624(Daily low), a break below could take the pair towards1.3531(38.2%fib).
USD/CAD: The Canadian dollar strengthened to nearly a three-week high against its U.S. counterpart on Tuesday as investors focused on higher oil prices rather than an escalating trade war between the U.S. and Canada.U.S. crude oil futures touched a three-month high at $94.73 a barrel on Tuesday after Iran-backed Houthis in Yemen attacked Saudi energy facilities. Oil is one of Canada's major exports.Canada's retaliatory tariffs on U.S. goods took effect after midnight, intensifying an 18-month-old trade war and spurring Prime Minister Mark Carney to urge a further shift away from the country's biggest trading partner.On Monday, U.S. President Donald Trump said Canadian private jet maker Bombardier would no longer be allowed to sell its planes in the U.S. unless it started manufacturing in the country. Immediate resistance can be seen at 1.3843(SMA 20), an upside break can trigger rise towards 1.3875(38.2%fib).On the downside, immediate support is seen at 1.3755(23.6%fib), a break below could take the pair towards 1.3709(Lower BB).
USD/JPY: The U.S. dollar dipped against yen on Tuesday as the pair came under pressure as markets sharply increased bets on a BoJ rate hike and investors unwound yen short positions. The yen has gained nearly 5% since last week, driven partly by expectations of faster Bank of Japan policy tightening, the potential repatriation of overseas funds by Japanese investors, the unwinding of carry trades and pressure from Washington.The currency strengthened to as much as 152.89 per dollar , surpassing levels reached during Japan's July intervention and touching its strongest level since February. Japanese Finance Minister Satsuki Katayama said on Tuesday Tokyo and Washington remain aligned in their approach to currency markets and will continue close communication to ensure orderly foreign exchange movements. Immediate resistance can be seen at 154.44(Daily high), an upside break can trigger rise towards 155.08(38.2%fib).On the downside, immediate support is seen at 152.95(23.6%fib) a break below could take the pair towards 152.00 (Psychological level).
Equities Recap
European shares were little changed on Tuesday as rising oil prices and escalating Middle East tensions kept investors cautious.
UK's benchmark FTSE 100 closed down by 0.10 percent, Germany's Dax ended flat, France’s CAC finished the day up by 0.14 percent.
The S&P 500 ended lower as software stocks declined and higher oil prices fueled by Middle East tensions weighed on sentiment ahead of inflation data.
Dow Jones closed down by 1.17 % percent, S&P 500 closed down by 0.58% percent, Nasdaq settled down by 0.32% percent.
Commodities Recap
Gold slipped as higher oil prices raised inflation fears and boosted bets on a Federal Reserve rate hike in September, with markets awaiting key U.S. inflation data.
Spot gold fell 0.4% to $4,385.09 per ounce by 02:22 p.m. EDT (1822 GMT), while U.S. gold futures for December delivery dropped 1% to settle at $4,430.10.
Oil prices climbed to a fresh six-week high on Tuesday after Iran-backed Houthis attacked Saudi energy facilities, raising fears of a wider escalation in the six-month-old Middle East conflict.
Brent futures rose 92 cents, or 0.9%, to settle at $97.92 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.55, or 1.7%, to settle at $93.03.
