Forex Today: A slow start to the week for currencies

During the Asian session, Australia is set to release important data, including the Westpac Consumer Sentiment and NAB Business Confidence surveys. Additionally, China will release trade data later in the session. 

Here is what you need to know on Tuesday, August 8:

Wall Street began the week on a positive note, with the Dow Jones gaining 1.15% and the Nasdaq rising by 0.61%. The risk-on sentiment weighed on the US Dollar, which experienced a decline during the American session. The US Dollar Index finished the day flat, hovering around the 102.00 level. The US 10-year Treasury yield rose to 4.1% and the 2-year yield declined to 4.76%.

Tuesday will be quiet in terms of economic data. During the Asian session, Australia will release consumer confidence data, and China will report trade numbers. It is expected that exports will contract by 12.5% and imports by 5% compared to the previous year. Later in the day, the final German Consumer Price Index will be released. The US and Canada will also release trade data. Market participants are primarily focused on the upcoming US inflation data scheduled for release on Thursday and Friday.

The EUR/USD finished around 1.1000 after recovering from losses and is currently holding onto the gains made after the Non-Farm Payrolls (NFP) report. The pair is moving between the 20-day and 100-day Simple Moving Averages (SMA). Germany reported a 1.5% contraction in Industrial Production for June.

GBP/USD extended its recovery but lost momentum below 1.2800. The UK is scheduled to release growth data on Friday. Meanwhile, EUR/GBP dropped to 0.8600, reaching the 20-day SMA.

USD/JPY rose on Monday, supported by higher government bond yields and improved risk appetite, climbing to 142.50. The bias remains to the upside, but there is a lack of strong conviction.

AUD/USD continues to consolidate around 0.6570, with the primary bias being to the downside. A break above 0.6600 could potentially strengthen the Australian Dollar. NZD/USD is trading sideways near 0.6100, holding onto its losses from last week. Antipodean currencies are still impacted by the decline in commodity prices.

Gold failed to hold above $1,940 and remains vulnerable, with the potential to reach monthly lows. Silver tumbled 2% and closed at $23.10, marking its lowest level in almost a month.

USD/CAD is indeed moving sideways, facing resistance at the 100-day SMA and the 1.3400 area. The pair closed again near 1.3360, and technical indicators suggest a weakening upside momentum.

Cryptocurrencies , including Bitcoin trading near $29,200 and Ethereum around $1,825, have been mostly trading sideways. Crude oil prices experienced a slight decline, with WTI managing to recover from losses and closing above $82.00.