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For the 24 hours to 23:00 GMT, the AUD declined 0.68% against the USD and closed at 0.7883.

LME Copper prices rose 0.1% or $7.0/MT to $6423.0/MT. Aluminium prices declined 0.6% or $12.0/MT to $2116.0/MT.

In the Asian session, at GMT0300, the pair is trading at 0.7874, with the AUD trading 0.11% lower against the USD from yesterday's close.

Earlier today, in China, Australia's largest trading partner, industrial profits registered a rise of 24.0% on an annual basis in August, following a gain of 16.5% in the previous month.

The pair is expected to find support at 0.7839, and a fall through could take it to the next support level of 0.7804. The pair is expected to find its first resistance at 0.7929, and a rise through could take it to the next resistance level of 0.7984.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the EUR declined 0.57% against the USD and closed at 1.1788.

In economic news, Germany's import price index remained flat on a monthly basis in August, compared to market consensus for an advance of 0.1%. The index had registered a drop of 0.4% in the previous month.

The US Dollar advanced against its major peers, after remarks from the US Federal Reserve (Fed) Chair, Janet Yellen, strengthened the case of a December interest rate hike.

The Fed Chief admitted that officials may have misjudged the labour market strength and the fundamental forces driving inflation and that downward pressures on inflation could prove to be unexpectedly persistent. However, Yellen outlined the need to continue gradual interest rate hikes and warned that policymakers should also be wary of moving too gradual to avoid the risk of overheating of the economy.

Separately, data released in the US showed that the CB consumer confidence index dropped more-than-expected to a level of 119.8 in September, from a revised five-month high level of 120.4 in the prior month, as concerns over the impact of Hurricanes Harvey and Irma weighed on investor sentiment.

Meanwhile, markets were anticipating the index to drop to a level of 120.0. Further, the nation's new home sales unexpectedly eased 3.4% on monthly basis to a level of 560.0K in August, dipping to an eight-month low, as Hurricanes Harvey and Irma affected sales. Market participants had envisaged for a rise to a level of 585.0K, after recording a revised reading of 580.0K in the prior month.

In the Asian session, at GMT0300, the pair is trading at 1.1788, with the EUR trading flat against the USD from yesterday's close.

The pair is expected to find support at 1.1743, and a fall through could take it to the next support level of 1.1699. The pair is expected to find its first resistance at 1.1847, and a rise through could take it to the next resistance level of 1.1907.

Amid no macroeconomic releases in the Euro-zone today, investors will draw their attention to the US flash durable goods orders and pending home sales data, both for August, along with mortgage applications data, all slated to release later in the day.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the GBP declined 0.22% against the USD and closed at 1.3452.

On the data front, Britain's BBA mortgage approvals climbed to a six-month high level of 41.81K in August, boosting optimism over the state of the nation's housing market. Markets had expected mortgage approvals to advance to a level of 41.70K, after recording a revised level of 41.64K in the previous month.

In the Asian session, at GMT0300, the pair is trading at 1.3438, with the GBP trading 0.1% lower against the USD from yesterday's close.

The pair is expected to find support at 1.3394, and a fall through could take it to the next support level of 1.335. The pair is expected to find its first resistance at 1.3498, and a rise through could take it to the next resistance level of 1.3558.

The currency pair is showing convergence with its 20 Hr moving average and trading below its 50 Hr moving average.

For the 24 hours to 23:00 GMT, the USD rose 0.48% against the JPY and closed at 112.28.

In the Asian session, at GMT0300, the pair is trading at 112.41, with the USD trading 0.12% higher against the JPY from yesterday’s close.

The pair is expected to find support at 111.76, and a fall through could take it to the next support level of 111.11. The pair is expected to find its first resistance at 112.8, and a rise through could take it to the next resistance level of 113.19.

Going ahead, traders will focus on Japan’s final machine tool orders data for August, due to release in a while.

The currency pair is trading above its 20 Hr and 50 Hr moving averages..

For the 24 hours to 23:00 GMT, the USD rose 0.31% against the CHF and closed at 0.9693.

In the Asian session, at GMT0300, the pair is trading at 0.9704, with the USD trading 0.11% higher against the CHF from yesterday's close.

The pair is expected to find support at 0.9665, and a fall through could take it to the next support level of 0.9626. The pair is expected to find its first resistance at 0.9735, and a rise through could take it to the next resistance level of 0.9766.

Looking forward, market participants would keep a close watch on Switzerland's ZEW expectations index for September and the UBS consumption indicator for August, slated to release in a few hours.

The currency pair is showing convergence with its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, the USD declined 0.07% against the CAD and closed at 1.2358.

In the Asian session, at GMT0300, the pair is trading at 1.2355, with the USD trading a tad lower against the CAD from yesterday’s close.

The pair is expected to find support at 1.232, and a fall through could take it to the next support level of 1.2284. The pair is expected to find its first resistance at 1.2402, and a rise through could take it to the next resistance level of 1.2448.

Ahead in the day, all eyes will be on a speech by the Bank of Canada (BoC) Governor, Stephen Poloz.

The currency pair is trading below its 20 Hr moving average and showing convergence with its 50 Hr moving average.

Currency pair GBP/USD

The GBP/USD seems to be building a falling wedge chart pattern (green/yellow lines). Price is now testing the support of that wedge. The corrective chart pattern fits within the larger wave 4 (blue) correction.

The GBP/USD has many support layers below it and could complete an ABC (grey) correction at support. A break of resistance (orange/red) could indicate the continuation of the uptrend whereas a break below support could indicate a larger wave C (grey) correction towards the Fibonacci targets.

Currency pair EUR/USD

The EUR/USD broke the support zone (dotted green) as expected in yesterday's analysis. The bearish momentum is indicated by the resistance trend line (yellow). Price could continue lower towards the Fibonacci targets but overall the bearish price action seems to be corrective. This could be explained by the potential wave 4 (blue).

The EUR/USD broke the support (dotted blue) of the bear flag chart pattern and continued lower towards the 1.1750 quarter level. The EUR/USD could extend the bearish momentum if price breaks below the support trend line (blue).

Currency pair USD/JPY

The USD/JPY has bounced at the 23.6% Fibonacci support level. Price is now testing the resistance trend line (red) of the correction and a bearish bounce could confirm the wave X (blue) correction. A deeper correction could be part of a wave 2 (light green) or a wave B (green).

The USD/JPY is probably in a wave X (blue) unless price manages to break above the resistance trend line (red) and the 138.2% Fibonacci level of wave X vs W.

Global Markets:

• Asian stock markets: Nikkei down 0.35 %, Shanghai Composite rose 0.05 %, Hang Seng up 0.49 %, ASX 200 rose 0.01 %
• Commodities: Gold at $1297.25.11 (-0.34 %), Silver at $16.88 (+0.01 %), WTI Oil at $52.16 (+0.54 %), Brent Oil at $58.13 (+0.36 %)
• Rates: US 10-year yield at 2.24, UK 10-year yield at 1.33, German 10-year yield at 0.40

News & Data:

• (USD) CB Consumer Confidence 119.8 vs 119.9 expected
• (USD) New Home Sales 560 K vs 585 K expected
• (EUR) German Import Prices m/m 0.0 % vs 0.1 % expected
• (GBP) High Street Lending 41.8 K vs 41.7 K expected
• (RUB) GDP y/y 2.3 % vs 1.8 % previous
• Brent oil edges up, near 26-month high amid supply concerns
• U.S. consumer confidence falls; new home sales hit eight-month low.
• Fed's Yellen says gradual hikes should continue, despite weak inflation- RTRS

Markets Update:

Equity markets across most of the Asia-Pacific region rose on Wednesday as investors hoped for progress on major tax reform in the United States following comments from Federal Reserve chief Janet Yellen about the prospect of higher interest rates. However, the Japanese stocks were lower ahead of interim dividend payments by many Japanese companies

USDJPY is currently seen trading around 112.35, earlier in the session price approached the 112.50 mark towards a 2-1/2 month high but couldn’t sustain the break above. Overall the Yen continues to drop against the USD continuing its 0.5 percent fall on Tuesday.

EURUSD continued to trade within a small range around 1.1780 closing onto more than one-month low as the Euro fell 0.5 percent against the US dollar mainly due to the anticipated political horse-trading in Germany before a new government could be formed. The dollar index, which tracks the dollar against a basket of currencies rose 0.1 percent and is currently valued at 93.09 touching the highest in a month.

AUDUSD is currently seen trading at 0.7865, as the Aussie fell 0.6 percent against the US Dollar. Meanwhile the NZDUSD is seen trading around the round number 0.7200 after recovering from yesterday’s lows of around 0.7160. Gold was little changed at $1,297.09 after slumping 1.3 percent in Tuesday’s session.

Upcoming Events:

• 08:00 GMT – (EUR) M3 Money Supply y/y
• 12:30 GMT – (USD) Core Durable Goods Orders m/m
• 12:30 GMT – (USD) Durable Goods Orders m/m
• 14:00 GMT – (USD) Pending Home Sales m/m
• 14:30 GMT – (USD) Crude Oil Inventories
• 15:45 GMT – (CAD) BOC Gov Poloz Speaks
• 18:00 GMT – (USD) FOMC Member Brainard Speaks
• 20:00 GMT – (NZD) Official Cash Rate
• 20:00 GMT – (NZD) RBNZ Rate Statement

Daily Pivots: (S1) 0.8743; (P) 0.8771; (R1) 0.8789; More...

Intraday bias in EUR/GBP remains on the downside for 61.8% retracement of 0.8312 to 0.9305 at 0.8691 and below. Fall from 0.9305 is seen as the third leg of consolidation pattern from 0.9304. We'll look for bottoming signal again at it approaches 0.8303 support. However, break of 0.8884 minor resistance is needed to indicate short term bottoming. Otherwise, outlook will stay bearish in case of recovery.

In the bigger picture, price actions from 0.9304 are viewed as a medium term corrective pattern. It's still in progress with fall from 0.9305 as the third leg. Break of 0.8303 could be seen. But we'd expect strong support from 0.8116 cluster support (50% retracement of 0.6935 to 0.9304 at 0.8120) to contain downside. Whole up trend from 0.6935 is expected to resume after consolidation from 0.9304 completes.

Daily Pivots: (S1) 1.4909; (P) 1.4938; (R1) 1.4977; More....

Intraday bias in EUR/AUD remains neutral as consolidation continues in range of 1.4791/5173. On the upside, break of 1.5173/5226 resistance zone will finally resume larger rise from 1.3624. On the downside, break of 1.4791 support will turn bias to the downside and extend the fall from 1.5173 to retest 1.4421 support.

In the bigger picture, we're holding on to the view that corrective decline from 1.6587 medium term top has completed at 1.3624. Rise from 1.3624 is expected to extend to retest 1.6587. The corrective structure of the price actions from 1.5226 is affirming this view. Above 1.5226 will target a test on 1.6587 key resistance. However, break of 1.4421 support will dampen our view and would drag EUR/AUD lower to retest key support zone around 1.3624.