Market Update - 05 December 2023

The index adds to Monday’s gains and revisits 103.80. US yields trade on the defensive so far on Tuesday. The US services sector will be in the limelight later in the session. The USD Index (DXY), which tracks the greenback vs. a bundle of its main competitors, maintains the optimism seen at the beginning of the week and advances to 103.80 on turnaround Tuesday. (FXStreet)

The Japanese Yen attracts some haven flows and reverses a part of its overnight losses against the USD.  Dovish Fed expectations keep the USD bulls on the defensive and exert pressure on the USD/JPY pair. Mixed BoJ signals might hold back traders from placing directional bets ahead of the key US macro data. (FXStreet)

EUR/USD extends its downside around 1.0834 ahead of the Eurozone PMI data. The pair maintains the bearish outlook below the key 100-hour EMA; RSI stands in the bearish zone below the 50.0 midline. 1.0867 acts as an immediate resistance level; 1.0806 will be the initial support level. (FXStreet)

USD/CAD scales higher for the second straight day amid bearish Crude Oil prices. The risk-off mood benefits the safe-haven USD and contributes to the downfall. The US macro data could provide some impetus ahead of the BoC on Wednesday. (FXStreet)

GBP/USD trades with a mild positive bias on Tuesday amid subdued USD price action. Fed rate cut bets trigger a fresh leg down in the US bond yields and undermine the USD. A softer risk tone helps limit losses for the safe-haven buck and keeps a lid on the pair. (FXStreet)

AUD/USD remains under some selling pressure for the second straight day on Tuesday. The RBA offered little cues about the future rate-hike path and weighs on the Aussie. The risk-off mood benefits the safe-haven USD and contributes to the intraday decline. (FXStreet)

AUD/JPY drifts lower for the second straight day and dives to a three-week low on Tuesday. The RBA decided to keep its benchmark interest rate unchanged, as was widely anticipated. The accompanying policy statement weighs on the Aussie amid a generally softer risk tone. (FXStreet)

NZD/USD loses ground near 0.6162 on the firmer USD.  New Zealand’s ANZ Commodity Price came in at a 1.3% drop in November from a 2.9% rise in October. US Factory Orders dropped 3.6% MoM in October versus a 2.3% rise prior. (FXStreet)

The AUD/NZD has been bolted to chart territory north of 1.0700 in the near-term. The Aussie's tumble last week has seen little paring back as the pair waffles in the midrange. (FXStreet)

WTI loses traction near $73.30 on concerns about Oil demand. China's Services PMI surged to 51.5 in November vs. 50.4 prior. Oil traders await the US ISM Services PMI, due later on Tuesday. (FXStreet)

Prices of natural gas started the new trading week on the back foot amidst increasing open interest and volume. That said, further decline carries the potential to drag the commodity to the key 200-day SMA around the $2.620 region per MMBtu. (FXStreet)

Gold price attracts some buyers on Tuesday and reverses a part of the overnight slide from the record high.  The uptick lacks bullish conviction as investors are seeking more clarity about the Fed's future rate-hike path.  Traders now look to the US macro data for some impetus amid falling US bond yields and the risk-off mood. (FXStreet)

Source: FXStreet, DailyFX

Disclaimer: This information does not represent a BUY or SELL recommendation on the stock covered. Traders and Investors are encouraged to do their own analysis on stocks instead of blindly following any Trading calls raised by various parties on the Internet.