Market Roundup
•US Jan Core Durable Goods Orders (MoM) -0.3%,0.2% forecast,0.6% previous
•US Jan Durable Goods Orders (MoM) -6.1%, -4.9% forecast,0.0% previous
•US Jan Goods Orders Non Defense Ex Air (MoM) 0.1%,.1% forecast,0.3% previous
•US Jan Durables Excluding Defense (MoM) -7.3%, 0.5% previous
•US Redbook (YoY) 2.7%, 3.0% previous
•US Dec House Price Index 417.8,417.4 previous
•US Dec House Price Index (MoM) 0.1%, 0.3% forecast,0.3% previous
•US Feb CB Consumer Confidence 106.7 , 114.8 forecast,114.8 previous
•US Feb Texas Services Sector Outlook -3.9, -9.3 previous
•US Feb Dallas Fed Services Revenues 5.2,-3.6 previous
Looking Ahead Economic Data(GMT)
•00:30 Australia Jan Weighted mean CPI (YoY) 3.60% forecast,3.40% previous
•00:30 Australia Construction Work Done (QoQ) (Q4) 0.6% forecast,1.3% previous
•01:00 New Zealand RBNZ Interest Rate Decision 5.50% forecast, 5.50% previous
•05:00 Japan Leading Index 110.0 forecast, 108.1 previous
•05:00 Japan Leading Index (MoM) 1.9% forecast,-1.3% previous
Looking Ahead Events And Releases(GMT)
•01:00 New Zealand RBNZ Monetary Policy Statement
•01:00 New Zealand RBNZ Rate Statement
•02:00 New Zealand RBNZ Press Conference
Currency Summaries
EUR/USD: The euro intailly gained against dollar on Tuesday but gave up ground as investors and central bankers braced for inflation data this week that could alter the course for interest rates . German states, France and Spain, will release inflation data on Thursday ahead of the euro area's figures due on Friday.ECB officials sounded more cautious about a quick easing of monetary policy, with President Christine Lagarde saying that wage growth remains robust, while the ECB dove Yannis Stournaras ruled out a rate cut before June. The euro was up 0.1% versus the greenback at 1.0845. It has steadily risen since mid-February when it hit 1.0695, its lowest since Nov. 14. Immediate resistance can be seen at 1.0866(Daily high), an upside break can trigger rise towards 1.0906 (23.6%fib).On the downside, immediate support is seen at 1.0808(38.2%fib), a break below could take the pair towards 1.0742 (50%fib).
GBP/USD: Sterling was little changed against dollar on Tuesday as investors awaited new catalyst to give the currency a bit of fresh pep. The pound has held up better than all other major currencies against the dollar in 2024, down around 0.2% so far this year at about $1.269. And while it has had a decent rally from early February's two-month lows, overall, it has been broadly stuck in a range of around $1.251 to $1.278 since the third week in December. The Bank of England is one thing that could give the pound a nudge and while it is still expected to cut interest rates later this year, traders think it will cut by less, and far later, than they thought just three weeks ago. Immediate resistance can be seen at 1.2708(23.6%fib), an upside break can trigger rise towards 1.2729(23.6%fib).On the downside, immediate support is seen at 1.2664(38.2%fib), a break below could take the pair towards 1.2629(50%fib).
USD/CAD: The Canadian dollar weakened to a near two-week low against its U.S. counterpart on Tuesday as U.S. bond yields climbed ahead of key economic data this week and despite higher oil prices. Canada is also due to release key economic data on Thursday. Analysts expect an annualized increase of 0.8% for gross domestic product in the fourth quarter. The U.S. 10-year yield rose 2 basis points to 4.319%, moving toward the top of its recent range, ahead of Thursday's release of the U.S. personal consumption expenditures price index for January which could offer clues on prospects for Federal Reserve interest rate cuts. The loonie was trading 0.2% lower at 1.3530 to the U.S. dollar, or 73.91 U.S. cents, after touching its weakest intraday level since Feb. 15 at 1.3539. Immediate resistance can be seen at 1.2141 (38.2%fib), an upside break can trigger rise towards 1.2229 (50%fib).On the downside, immediate support is seen at 1.2075 (21DMA), a break below could take the pair towards 1.2039 (23.6%fib).
USD/JPY: The dollar dipped against yen on Tuesday after figures confirmed inflation was above the Bank of Japan's (BOJ) target.Japan's core consumer inflation exceeded forecasts, keeping alive some expectations that the BOJ might end negative interest rates by April. The 2.0% gain in the core consumer prices index (CPI) was slower than the 2.3% increase in December, internal affairs and communications ministry data showed on Tuesday, underscoring views waning cost-push inflation from commodity imports could ease the pain of higher living costs. The yen rose 0.35% to 150.18 . It hit in mid-February 150.88, its lowest level since Nov. 16. Strong resistance can be seen at 151.00(23.6%fib) an upside break can trigger rise towards 151.69(Higher BB).On the downside, immediate support is seen 149.79(38.2%fib), a break below could take the pair towards 149.00(Psychological level )
Equities Recap
Europe's benchmark stock index inched up on Tuesday, with Germany's DAX hitting a record high, while investors awaited this week's inflation data that could shed some light on when interest rate cuts might commence this year.
UK's benchmark FTSE 100 closed down by 0.02 percent, Germany's Dax ended up by 0.76 percent, France’s CAC finished the day up by 0. 23 percent.
U.S. stocks closed near flat on Tuesday ahead of inflation and other economic data that could shed light on the possible timing of a Federal Reserve interest rate cut.
Dow Jones closed down by 0.25 percent, S&P 500 ended down by 0.03 percent, Nasdaq finished the day down by 0.52 percent.
Commodities Recap
Gold prices held steady on Tuesday, with key inflation reading and comments from Federal Reserve officials on investors' radar this week.
Spot gold was little changed at $2,031.77 per ounce as of 13:52 p.m. ET (1852 GMT).U.S. gold futures settled 0.3% higher at $2,044.10.
Oil prices rose more than $1 a barrel on Tuesday as sources said OPEC+ is considering extending voluntary oil output cuts into the second quarter to provide additional support.
Brent crude futures rose $1.12, or 1.4%, to $83.65 a barrel, while U.S. West Texas Intermediate crude futures (WTI) were up $1.29, or 1.7%, at $78.87.
