Forex Today: Japanese GDP figures and China’s trade results in the limelight

The US Dollar (USD) started the week on the back foot, declining from its previous momentum and focusing on the downside. The Greenback has also tested three-day lows, as investors digest stronger results from the Nonfarm Payroll (NFP) report and shift attention to Friday's US inflation data. The US Dollar Index (DXY) declined, approaching multi-day troughs below 99.00, while the NFIB Business Optimism Index, ADP Employment Change Weekly, and Consumer Inflation Expectations data are upcoming.

The EUR/USD pair traded in the upper range of its recent range, supported by fresh selling interest against the US Dollar. German Balance of Trade results and the ECB's Elderson speech will dominate the domestic data scene, while GBP/USD followed the rest of its risk-linked peers, starting the week in an upbeat tone. The BRC Retail Sales Monitor will be the sole release in the UK.

A boost for the Japanese Yen was seen after further tightening hints from the Bank of Japan (BoJ), pushing USD/JPY to fresh seven-month lows near 154.00. The Average Cash Earnings, Current Account balance, Bank Lending figures, and Q2 GDP Growth Rate are next on the agenda. AUD/USD continued its multi-week positive trend, hitting recent levels last seen in mid-May above 0.7220.

Westpac's Consumer Confidence index, Private House Approvals, Building Permits, NAB's Business Confidence gauge, and speeches by RBA's Hunter and Hauser are upcoming releases in Australia. WTI prices touched three-month tops above $93.00 amid growing tensions in the US-Iran conflict. Gold faced modest losses, hovering just above $4,400 per troy ounce, as market participants assessed Friday's Nonfarm Payrolls data and US inflation figures.

Gold rebounded slightly to reclaim $4,400 per troy ounce on Monday, following the Greenback's decline and steady caution ahead of key US data releases. US diesel crack spread surged above $100 per barrel for the first time, indicating a significant upward trend.