Ella 
Here’s what you need to know on Wednesday (August 9):
The dollar struggled to hold its strength against major currencies on Wednesday after rising on Tuesday. In the absence of important data in the middle of the week, risk sentiment improved slightly, and US stock futures rose slightly during the European session. Financial markets are likely to be driven by comments from central bankers ahead of Thursday’s highly anticipated U.S. inflation data.
Wall Street’s main indexes tumbled on Tuesday as the market reacted to disappointing trade data from China. During the North American session, however, dovish comments from Fed policymakers limited gains against the dollar index. The index is currently trading in negative territory below 102.50.
USD/JPY is the strongest today.
During the Asian session, data from China showed that China’s consumer price index (CPI) rose 0.2% month-on-month in July. The annual CPI for the same period fell -0.3 from 0% in June, while the producer price index (PPI) fell 4.4%.
AUD/USD resumed gains after touching below 0.6500, the lowest level since early June, and last traded above 0.6550. Likewise, NZD/USD is trading in positive territory around 0.6100. The Reserve Bank of New Zealand announced that its two-year inflation forecast rose slightly to 2.84% in the third quarter from 2.79% in the second quarter.
EUR/USD rebounded after falling to an intraday low of 1.0930 on Tuesday and settled above 1.0950. The currency edged higher for Wednesday, but remained below 1.1000.
GBP/USD recouped most of the day’s losses after falling below 1.2700 on Tuesday. The exchange rate maintained its rebound momentum and traded above 1.2750 in early European trading.
Following a two-day rally, USD/JPY lost momentum and retreated to 143.00 on Wednesday. Japanese data showed machine tool orders fell 198% in July from a year earlier.
Gold prices fell to a multi-week low near $1,920 on Tuesday and ended lower. The benchmark U.S. 10-year Treasury yield was steady around 4%. XAU/USD edged higher near $1930.
Bitcoin has gathered momentum, rising above $30,000 after consolidating over the past few days. However, BTC/USD failed to break through this level and retreated slightly to point to $29,700. Ethereum rose more than 1.5 percent on Tuesday, but lost momentum before testing $1,900.
