Ella 
In early trading on Wednesday, the U.S. dollar (USD) struggled to extend Tuesday’s strong gains, with the U.S. dollar index fluctuating slightly above 106.00. New home sales in September will be an important part of the U.S. economic calendar. Later in the day, the Bank of Canada (BOC) will announce a monetary policy decision, with Governor Tiff Macklem speaking at a press conference on the policy outlook.
Wall Street’s major indexes opened higher on Tuesday and posted strong gains. Meanwhile, the benchmark 10-year Treasury yield fell for a third straight session before settling slightly above 4.8%. However, better S&P Global Manufacturing and Services Purchasing Managers’ Index (PMI) data for October boosted the dollar during the U.S. session. U.S. stock futures were mixed in early European trading on Wednesday.
During the Asian session on Wednesday, the Australian Bureau of Statistics released a report saying that Australia’s third-quarter inflation rate, measured by changes in the Consumer Price Index (CPI), rose to 1.2% on a quarterly basis. On an annual basis, CPI rose 5.4% in the third quarter. Both data were higher than market expectations, helping AUD/USD to build bullish momentum. At press time, the pair was up nearly 0.4% on the day at 0.6380.
