Forex Today: US Dollar jumps, Oil soars and Gold tumbles; Australia GDP next

Important economic events for the day include the release of Australia's Q2 GDP numbers. German Factory Orders and Eurozone Retail Sales data are due. The Bank of Canada will hold its monetary policy meeting.

Here is what you need to know on Wednesday, September 6:

The US Dollar Index hit a nine-month high on Tuesday, supported by higher Treasury yields and cautious market sentiment. Economic data from China and the Eurozone weighed on market sentiment.

The Euro lagged following a downward revision to the August Services PMI, raising doubts about the next move from the European Central Bank (ECB). EUR/USD dropped to around 1.0700, reaching its lowest since June. The overall trend remains bearish. Additionally, EUR/GBP fell again, reaching 0.8525.

GBP/USD also reached monthly intraday lows; it trimmed losses during the American session but remained below 1.2600.

USD/JPY accelerated its upward momentum, breaking above 147.50, driven by higher Treasury yields. Intervention comments and speculations are likely. 

USD/CAD rose on Tuesday but finished far from its highs after the Canadian Dollar (Loonie) outperformed during the American session, supported by the rally in crude oil prices. The pair peaked at 1.3671, the highest intraday level since November, before returning to 1.3620. The Bank of Canada will announce its monetary policy decision on Wednesday, with no changes expected.

The Aussie (AUD) lagged on Tuesday after the Reserve Bank of Australia (RBA) kept its interest rate unchanged as expected and mentioned downside risks to the economy. AUD/USD broke below 0.6400, reaching its lowest level since November. On Wednesday, Australia will release Q2 GDP growth data.

NZD/USD suffered its worst daily losses in weeks due to a stronger US Dollar. The pair dropped below 0.5900 and bottomed at 0.5859.

Gold ended its consolidation phase with a decline from nearly $1,940 to $1,925. The bias remains to the downside, pressured by higher yields and the US Dollar. Silver fell for the fifth consecutive day, finding support above the 20-day SMA at $23.50.

Crude oil prices jumped on Tuesday after Russia and Saudi Arabia announced an extension of their unilateral production cut. The WTI reached $88.00 for the first time since November before trimming gains.