Prospects for a soft US landing remain challenged by the data

The greenback regained its balance and rebounded strongly after Monday’s inconclusive price action amid the Labor Day holiday, advancing to two-week highs amid continued weakness in risk assets.

Here’s what you need to know on Wednesday, September 4:

The US Dollar Index (DXY) advanced further and flirted with the key barrier of 102.00 on rekindled recession concerns and despite falling US yields. Weekly mortgage claims from the MBA will be out on September 4, followed by the results of the Trade Balance, Factory Orders and the Fed Beige Book.

EUR/USD gained further downside traction and slipped below 1.1030 following the greenback’s strong rebound. The final German and Euro bloc HCOB services PMI is expected on September 4.

GBP/USD added to the ongoing bearish correction and breached the 1.3100 support to hit two-week lows. The final S&P Global Services PMI will be released on September 4.

The Japanese yen’s sharp rebound dragged USD/JPY near the 145.00 area after four consecutive daily advances. On September 4th, the final Jibun Bank Services PMI is coming.

AUD/USD fell over 1% to trade just shy of key support at the 0.6700 figure, all in response to a stronger US dollar, jittery Chinese demand and lingering weakness around commodities. The Ai Group Industry Index and the final Judo Bank Services PMI are due on September 4.

WTI prices fell to the key $70.00 per barrel barrier amid a potential deal in Libya that could lead to a resumption of local oil production and exports in the very near term.

Gold prices fell below $2,500 per troy ounce to hit fresh multi-day lows amid a resumption of the US dollar bullish trend. Silver also hit a recent low, falling to three-week lows below $28.00 an ounce.