technical

The Australian Dollar (AUD) carried Monday’s good mood into Tuesday, pushing AUD/USD closer to the key 0.6600 level, its highest in three weeks.

Spot Gold extended its bearish run on Tuesday, bottoming at $3,886.62 during European trading hours, then bouncing to the current $3,960 price zone. A better market mood weighed on safe-haven demand throughout the day, equally affecting the US Dollar (USD) and the precious metal.

The EUR/USD pair trades around 1.1630, easing from an early peak of 1.1668. The pair sees little action, but managed to post a higher high on a daily basis, while adding ground for a fifth consecutive day.

As expected, the EUR/USD price has remained within narrow ranges at the start of this week’s trading, pending the market and investor reaction to the policy announcements from both the US Federal Reserve (Fed) and the European Central Bank (ECB).

Gold prices dropped below the key $4,000 level on Tuesday as easing geopolitical tensions and anticipation of a Fed rate cut triggered profit-taking and bearish momentum.

The euro continued its strong rally against the Japanese yen on Monday, fueled by risk-on sentiment and expectations of further yen weakness ahead of central bank meetings.