NZD/USD leads the bulls as US dollar, yields retreat ahead of Fed

Global markets turned surprisingly optimistic during early Tuesday as a pullback in the US Treasury yields joined chatters about a slower Fed rate hike from December. With this, the US dollar prints the first daily loss in four, which in turn adds strength to the rebound in prices of commodities and Antipodeans.

With this, the RBA‘s second consecutive rate hike of 0.25% couldn’t derail the AUDUSD pairs upside while strong New Zealand (NZ) housing data and optimism in China favored the NZDUSD to print the biggest jump among the G10 currency pairs.

That said, stocks in China rallied while the US stock futures also ignore Wall Streets downbeat closing.

Elsewhere, prices of gold and crude oil look set to begin October with the biggest daily gains in a week.

It should be noted that the BTCUSD and ETHUSD also defied the two-day losing streak by the press time amid broad US dollar weakness.

Following are the latest moves of the key assets:

• Brent oil snaps two-day downtrend while regaining $96.00, up 1.60% intraday at the latest.

• Gold also prints the first intraday gains in four, up 0.70% around $1,645 by the press time.

• USD Index drops to 111.00 while defying the three-day winning streak, down 0.38% on a day as we write.

• FTSE rises 0.80% and Euro Stoxx is also up half a percent but DAX remains indecisive at the momentum.

• Wall Street printed the first daily loss in three but the downside appeared limited.

• BTCUSD and ETHUSD are both mildly bid near $20,500 and $1,600 respectively.