USD/CHF is testing the 0.81 area with bullish potential toward 0.82, while Powell’s Jackson Hole speech looms as the key catalyst for volatility.

Gold is looking to extend the previous decline early Friday after Thursday’s late rebound lost traction. All eyes now turn to US Federal Reserve (Fed) Chair Jerome Powell’s speech at the Jackson Hole Economic Symposium.

Spot Gold trades little changed on Thursday, trading just shy of $3,350 in the American afternoon. Financial markets turned optimistic following the release of the S&P Global preliminary estimates of the United States (US) Purchasing Managers’ Indexes (PMI), as data was much better than anticipated.

The Euro (EUR) faced increased selling pressure on Thursday, with EUR/USD edging down toward the 1.1600 contention zone. The marked retracement came as the US Dollar (USD) rose sharply to multi-day highs, underpinned by firm data from the US business activity in August.

The Australian Dollar (AUD) stays under pressure on Thursday, with AUD/USD slipping toward two-month lows near the 0.6400 support.

Financial markets keep struggling for direction, with the EUR/USD pair still confined to a tight range and currently trading at around 1.1650. Multiple headlines are pushing the pair back and forth, although none have been enough to trigger a clear directional movement.