FxAnalysis

The AUD/USD exchange rate moved sideways even as the divergence between the Federal Reserve and the Reserve Bank of Australia (RBA) continued.

The Indian Rupee’s drama continues despite the RBI’s recent aggressive interventions and regulatory curbs. While these actions have caused the sharpest single-day gains in years, their effect has been wiped out in a matter of days. So why is every RBI move failing to break the Rupee’s downtrend?

Gold is rallying hard in Asia on Wednesday, reclaiming the $4,600 barrier while extending its recovery from over one-month lows of $4,501 set on Tuesday.

UK 30-year gilts traded as high as 5.78% on Tuesday, the highest level since 1998, while 10-year yields topped 5.10% with markets pricing in nearly three-quarter-point Bank of England (BoE) rate hikes this year.

The Aussie Dollar seems to have embarked on a consolidative phase, with AUD/USD finding support around the 0.7100 neighbourhood while the upside appears capped by the YTD tops just below 0.7200 the figure.

Spot Gold posts modest intraday gains on Tuesday, changing hands at around $4,550 per troy ounce. The precious metal quickly started the week with a weak tone, as tensions in the Middle East escalated.