Forex Today: Investors now look at the US labour market

The US Dollar extended its intense sell-off on Tuesday, retreating to levels last seen in early December as investors remained concerned over the health of the US economy ahead of key data releases in the US labour market.

Here is what you need to know on Wednesday, March 5:

The US Dollar Index (DXY) broke below the 106.00 support to hit new three-month lows in response to rising worries over the US economy, while the extra decline in US also added to the sour sentiment. The ADP Employment Change takes centre stage seconded by the final S&P Global Services PMI, the ISMM Services PMI, Factory Orders, the Fed Beige Book and the EIA's weekly report on US crude oil stockpiles.

EUR/USD extended its march north, reaching new yearly peaks around 1.0550 on the back of the persistent offered bias in the US Dollar. Next on tap in the region will be the Unemployment Rate in the bloc, followed by the final HCOB Services PMIs in Germany and the euro area, as well as Producer Prices in the euro zone.

GBP/USD added to Monday's uptick beyond 1.2700 the figure and hit new three-month peaks in the 1.2745-1.2750 band. The final S&P Global Services PMI is due followed by speeches by the BoE's Bailey and Pill.

USD/JPY plummeted to five-month lows on Tuesday, challenging the key contention zone around 148.00. All the attention will be on Japan's Unemployment Rate along with Capital Spending figures and the Consumer Confidence print.

AUD/USD failed to maintain its initial bull run to the proximity of 0.6250, although it managed well to keep the trade above the 0.6200 mark and chart humble gains for the day. Markets' attention will be on the publication of the Ai Group Industry Index, seconded by the final S&P Global Services PMI, and key Q4 GDP Growth Rate.

The combination of geopolitical concerns, the OPEC+ plans to hike production in April and US tariffs sent prices of the barrel of WTI to new yearly lows near the $67.00 mark.

Gold prices added to Monday's optimism and extended further its surpass of the key $2,900 mark per troy ounce on the back of steady safe haven demand. Silver prices advanced further and flirted with multi-day highs near the 432.00 mark per ounce.