Asia Roundup: Dollar steadies near two-week high ,Asian stocks fall , Gold hits over 3-week low , Oil prices extend gains –September 2nd ,2026

Market Roundup

• Australia GDP (YoY) (Q2) 2.1%, 1.8% forecast, 2.5% previous

• Australia GDP (QoQ) (Q2) 0.4%, 0.3% forecast, 0.3% previous

• Australia GDP Final Consumption (Q2) 0.5%, 0.1% previous

• Australia GDP Chain Price Index (Q2) -0.6%, 0.9% previous

• Australia GDP Capital Expenditure (Q2) -0.3%, 3.1% previous

• New Zealand RBNZ Interest Rate Decision 2.75%, 2.75% forecast, 2.50% previous

Looking Ahead Economic Data (GMT)  

•07:00 Spanish Unemployment Change  (Aug) 15.4K forecast,19.5K previous

•08:00 Italian PPI (YoY) (Jul) 5.8% previous

•08:00 Italian PPI (MoM) (Jul) 0.0% previous

Looking Ahead Events And Other Releases (GMT)  

• No Events Ahead

Currency Forecast

EUR/USD : The euro edged lower against the U.S. dollar on Wednesday as the greenback strengthened after renewed hostilities in the Middle East pushed oil prices higher, reviving concerns over inflation. The U.S. launched a barrage of airstrikes on Iran on Tuesday, prompting Iranian retaliation and marking the most serious escalation in weeks. The heightened geopolitical tensions boosted demand for the dollar as a safe-haven asset, while rising U.S. Treasury yields provided additional support. The dollar’s appeal was further reinforced by growing expectations that the Federal Reserve could raise interest rates, despite recent U.S. economic data coming in below market forecasts. July JOLTS job openings and the August ISM manufacturing index, both released overnight, missed expectations, pointing to some signs of weakness in the U.S. economy. However, money markets have continued to increase bets on a Federal Reserve rate hike following Chair Kevin Warsh’s hawkish comments at the Jackson Hole symposium in Wyominglast week.. Immediate resistance can be seen at 1.1597(SMA 20), an upside break can trigger rise towards 1.1625(38.2%fib).On the downside, immediate support is seen at 1.1565(50%fib), a break below could take the pair towards 1.1502(61.8%fib).

GBP/USD: Sterling extended decline    against the dollar on Wednesday as sterling continued to face selling interest as a broader risk-off mood in financial markets and rising oil prices weighed on sentiment. Oil prices climbed to a five-week high, raising concerns about renewed inflationary pressures and the potential for tighter monetary policy.Sterling was also pressured by growing investor concerns over fiscal conditions globally. Markets are becoming increasingly cautious about rising government deficits and debt levels, prompting some investors to reduce exposure to risk-sensitive assets and currencies such as the pound. On the UK side, the economic outlook has shown some improvement, although businesses remain cautious about increasing investment. The British Chambers of Commerce (BCC) said the outlook for the UK economy had improved, but continued uncertainty and concerns over costs and demand were keeping firms wary of committing to new investment.Immediate resistance can be seen at 1.3552(SMA 20), an upside break can trigger rise towards 1.3565(38.2%fib).On the downside, immediate support is seen at 1.3482(50%fib), a break below could take the pair towards1.3435(Lower BB).

 AUD/USD: The Australian dollar slipped against the U.S. dollar on Wednesday as a stronger greenback offset upbeat Australian second-quarter GDP data.Australian economic data showed the economy grew 0.4% in the second quarter, slightly exceeding forecasts for 0.3%, supported largely by a surge in consumer spending on electric vehicles as petrol prices rose. Annual growth slowed to 2.1% from 2.5%, but remained well above expectations of 1.8% and exceeded the Reserve Bank of Australia’s estimate of the economy’s sustainable growth rate.The stronger-than-expected GDP figures prompted investors to raise expectations for an RBA rate hike this month, with the probability increasing to 58% from 49% before the data. Markets are also fully pricing in a move to 4.60% by November.Looking ahead, investors will focus on appearances by RBA officials Sarah Hunter and Dr James Bishop before a Senate committee on Thursday for further clues on the central bank’s monetary-policy outlook. Immediate resistance can be seen at 0.7198(38.2%fib), an upside break can trigger rise towards 0.7215(Higher BB).On the downside, immediate support is seen at 0.7129(38.2%fib), a break below could take the pair towards 07114(SMA 20)

USD/JPY:  The U.S. dollar dipped against the yen on Wednesday but remained above the psychologically important 160-per-dollar level, despite strong expectations that the Bank of Japan will raise interest rates this month.U.S. Treasury Secretary Scott Bessent voiced strong support for “decisive” monetary measures to address yen weakness during a meeting with BOJ Governor Kazuo Ueda, the U.S. Treasury Department said. Ueda told reporters he hoped to discuss with fellow policymakers at this month’s meeting whether the economy was developing in line with the bank’s forecasts and whether inflation risks were increasing.Meanwhile, hawkish BOJ board member Hajime Takata said on Wednesday that the central bank should adjust interest rates nimbly in response to inflationary pressures, reinforcing expectations of further monetary-policy tightening.Investors are now awaiting the ADP employment report due later on Wednesday, followed by the more closely watched U.S. nonfarm payrolls report on Friday. The data will be closely monitored for clues on the Federal Reserve’s interest-rate outlook and the direction of the dollar.. Immediate resistance can be seen at 160.00(Psychological level), an upside break can trigger rise towards 160.73(Higher BB).On the downside, immediate support is seen at  159.54(Daily  low) a break below could take the pair towards 159.05(SMA 20).

Equities Recap

Asian stocks fell sharply on Wednesday as a bond market-driven selloff in global markets spilled into the region.

Japan’s Nikkei 225 was down by 2.74% ,   Hang Seng was down at  0.34%, China A50 was down at 0.86%

Commodities Recap

Gold fell on Wednesday to its lowest level in more than three weeks as escalating tensions in the Middle East pushed oil prices higher, fueling concerns over inflation and increasing expectations for interest-rate hikes.

Spot gold was down 0.6% ​at $4,304.01 per ounce by 0017 GMT, its lowest since August 7. Prices were ​headed for a fourth straight session of losses and remained below ⁠the 200-day moving average, a closely watched technical level.

Oil prices rose in early trade on Wednesday, extending the previous session’s surge, as concerns over supply disruptions intensified after the U.S. and Iran exchanged strikes overnight, reducing hopes for a quick easing of tensions in the Middle East.

Brent crude futures rose 75 cents, or 0.8%, to $95.40 a barrel by 0345 GMT, while U.S. West Texas Intermediate crude futures climbed 44 cents, or 0.5%, to $90.66.