Forex Today: Investors' attention shifts to US PCE data and German flash CPI

The US Dollar (USD) extended further its weekly correction as jitters surrounding the Fed's independence remained unabated, while tariff uncertainty and the increasing likelihood of a rate cut by the Federal Reserve in September also contributed to the sour sentiment around the Greenback.

Here's what to watch on Friday, August 29:

The US Dollar Index (DXY) retreated to three-day lows, breaking below the 98.00 key support and its 55-day SMA. The release of the PCE readings will be the salient event, seconded by the final gauge of the U-Mich Consumer Sentiment and the advanced Goods Trade Balance.

EUR/USD advanced to multi-day highs, although a retest of the 1.1700 barrier remained elusive. Germany will be in the spotlight with the release of the preliminary Inflation Rate, Retail Sales, and the labour market report. In addition, the ECB will publish its Consumer Inflation Expectations, all ahead of the speech by the ECB's De Guindos.

GBP/USD managed to advance modestly and clinch its third consecutive day of gains, although a convincing break above 1.3500 the figure remained to be seen. The Nationwide Housing Prices will be next on tap across the Channel.

USD/JPY deflated to three-day lows, breaching below the 147.00 support amid further weakness in the Greenback. A busy calendar in Japan will see the release of the Unemployment Rate, Tokyo Inflation Rate, Industrial Production, Retail Sales, Consumer Confidence, Housing Starts, and Construction Orders.

AUD/USD extended its recovery and reclaimed the 0.6500 hurdle and above on Wednesday. The Housing Credit figures and Private Sector Credit readings will be in the limelight in Oz.

A small knee-jerk saw prices of the american WTI recede to the $63.50 zone per barrel as traders factored in the end of the US driving season as well as the resumption of Russian oil supply to Hungary and Slovakia.

Gold prices rose to five-week highs north of the $3,400 mark per troy ounce, helped by a weaker US Dollar, mixed US yields and prospects for rate cuts by the Fed next month. Silver prices followed suit, climbing to levels last seen in late July, just over the $39.00 mark per ounce.