Forex Today: Quiet markets, focus turns to the RBA

The key event during the Asian session will be the Reserve Bank of Australia meeting. No change is expected in interest rates. Additionally, the final reading of Services PMIs will be released. Later in the day, Eurozone wholesale inflation and US Factory Orders data are due.

Here is what you need to know on Tuesday, September 5:

On a quiet session, the US Dollar Index fell modestly and held above 104.00, near monthly highs on a quiet session with Wall Street closed due to Labor Day. US stock futures fell marginally. On Tuesday, July Factory Orders are due. 

European Central Bank (ECB) President Christine Lagarde did not provide any new information in her speech on Monday. German trade data came in better than expected, while Eurozone Sentix Investor Confidence dropped further in September to -21.5. EUR/USD moderately rose but was unable to consolidate above 1.0800. The bias remains to the downside, with support at 1.0760. On Tuesday, Lagarde will speak again, Eurostat will release the August Producer Price Index, and the final Service PMIs are due.

GBP/USD rose from below 1.2600 to the 1.2630 area. The Pound outperformed with EUR/GBP falling below 0.8550. The final Service PMI from the UK is due on Tuesday.

USD/JPY continued to rise and climbed to the 146.50 area. A consolidation above that level would strengthen the bullish outlook.

AUD/USD closed around the 20-day Simple Moving Average (SMA) around 0.6460, with modestly gains amid a weaker US Dollar. The Reserve Bank of Australia (RBA) is scheduled to announce its monetary policy decision on Tuesday. It is widely anticipated that the RBA will maintain its key interest rate at 4.1%. This meeting will mark the final one with Philip Lowe serving as governor of the RBA.

NZD/USD continued to trade sideways, with a crucial support level at 0.5900 and trading below the 20-day SMA at 0.5970. To indicate a more sustainable recovery, the Kiwi needs to achieve a daily close above 0.6000.

USD/CAD maintained its gains from Friday but struggled to decisively break above 1.3600. The Bank of Canada will have its monetary policy meeting on Wednesday.

Gold closed near the $1,940 area for the third consecutive day. It continues to trade sideways after failing to break above $1,950 and the 100-day SMA. Silver experienced its fourth consecutive day of losses, slipping slightly below $24.00.

Crude oil prices maintained their recent gains, with the WTI barrel hovering around $85.00. These gains were supported by output cuts from Russia and Saudi Arabia, as well as hopes for additional stimulus measures from China.