Analyzes

The German index fell to kick off the day on Tuesday, but in the end, we still have a lot of economic headwinds and issues to chew through.

The GBP/USD exchange rate rose slightly as odds of a negotiated settlement between the United States and Iran rose. It jumped to 1.3417 on Wednesday, up from the year-to-date low of 1.3220.

The AUD/USD pair rose slightly after the Australian Bureau of Statistics (ABS) published the latest consumer inflation report. It rose to the important resistance level at 0.7000 from this week’s low of 0.6908.

Gold sees a brief recovery stint for the second straight day on Wednesday, gaining roughly 2.5% so far, courtesy of the renewed market optimism induced by potential ceasefire talks between the United States (US) and Iran.

The EUR/USD is exhibiting modest indications of recovery after slipping back toward the 1.1400 zone a few days ago, or YTD lows.

For the time being, the near-term outlook for the Australian Dollar (AUD) remains positive, supported by consistently strong inflation in Australia and the RBA’s hawkish inclination.