Market Roundup
•Australia NAB Business Confidence (Dec)3,2 previous
•Australia NAB Business Survey (Dec)9 ,7 previous
•Chinese Industrial profit YTD (Dec)0.6%0.1% previous
• New Zealand Credit Card Spending (YoY) (Dec)-0.3% ,4.4% previous
Looking Ahead Economic Data (GMT)
• 10:30German 2-Year Schatz Auction 2.110% previous
Looking Ahead Events And Other Releases (GMT)
•No Events Ahead
Currency Forecast
EUR/USD : The euro edged lower against dollar on Tuesday as investors were cautious on uncertainty caused by President Donald Trump’s latest tariff moves on South Korea.Traders were still recovering from last week's bout of U.S.-EU trade uncertainty sparked by a dispute over Greenland, while also weighing the long-term implications of U.S. tariffs being used as a bargaining chip in an unrelated matter. The Federal Reserve is scheduled to deliver its latest policy decision on Wednesday where no move in interest rates is expected. The meeting will, however, be overshadowed by the Trump administration's criminal investigation of chair Jerome Powell, whose term ends in May. The Fed is expected to leave borrowing costs unchanged, but concerns about its independence are likely to be centre stage. Immediate resistance can be seen at 1.1904(23.6%fib), an upside break can trigger rise towards 1.1925(Higher BB).On the downside, immediate support is seen at 1.1827 (38.2%fib), a break below could take the pair towards 1.1767(50%fib).
GBP/USD: Sterling edged lower on Tuesday as investors were cautious amid geopolitical uncertainty. Escalating trade tensions, U.S. President Donald Trump said on Monday he would raise tariffs on South Korean auto, lumber, and pharmaceutical imports to 25%, while criticizing Seoul for failing to enact a trade deal with Washington.This was after he threatened tariffs on Canada in the backdrop of a thawing relationship between the two countries, following Canadian Prime Minister Mark Carney's visit to China earlier this month. A looming U.S. government shutdown and Trump's erratic policymaking also pressured the greenback, making the dollar-priced gold cheaper for overseas consumers. Immediate resistance can be seen at 1.3562(23.6%fib), an upside break can trigger rise towards 1.3583(Higher BB).On the downside, immediate support is seen at 1.3464(38.2%fib), a break below could take the pair towards 1.3386(50%fib).
AUD/USD: The Australian edged higher edged higher on Tuesday as on-going policy uncertainty linked to the Trump administration’s agenda weighed on risk sentiment . Markets remain cautious amid rising risks of renewed debate over potential threats to Federal Reserve independence. These factors have increased political risk premiums on U.S. assets, reducing demand for the greenback and providing underlying support to the Australian dollar. Market attention is now firmly focused on the Federal Open Market Committee (FOMC) meeting scheduled for Wednesday. While no interest rate change is expected, investors will closely analyze Chair Jerome Powell’s post-meeting statement .On the domestic front, Australia’s Q4 Consumer Price Index (CPI) data is also due on Wednesday. Immediate resistance can be seen at 0.6934(23.6%fib), an upside break can trigger rise towards 0.7000(Psychological level).On the downside, immediate support is seen at 0.6760(38.2%fib), a break below could take the pair towards 0.6718(SMA 20)
USD/JPY: The U.S. dollar edged higher but gains were limited as traders remained on alert to the prospect of a coordinated currency intervention by authorities in the U.S. and Japan. The yen has dominated currency market attention, surging as much as 3% in two sessions following speculation over coordinated rate checks by the U.S. and Japan typically seen as a warning sign ahead of intervention. In an analysis released on Tuesday, the BOJ said the weak yen is having a growing impact on Japan’s inflation not only by raising import costs but also through second-round effects such as the pass-through of labour costs. Data on Tuesday showed a key indicator of Japan’s services sector prices rose 2.6% year-on-year in December, underscoring how labour shortages are driving firms to pass on rising costs.The increase in the services producer price index, which tracks the price companies charge each other for services, followed a 2.7% gain in November, Bank of Japan data showed. Immediate resistance can be seen at 155.35(Jan 26th high) an upside break can trigger rise towards 156.36(38.2%fib) .On the downside, immediate support is seen at 153.83(50%fib) a break below could take the pair towards 153.39 (50%fib).
Equities Recap
Asian shares hit a new record on Tuesday as investors hoped for the best from a barrage of U.S. large-cap earnings, though uncertainty caused by President Donald Trump's latest tariff moves on South Korea boosted gold and silver.
Hang Sang was up 1.23 %, Japan’s Nikkei 225 was up by 0..77% ,South Korea’s KOSPI was up at 2.74%
Commodities Recap
Gold rose on Tuesday, after breaking through the $5,100 mark for the first time in the previous session, as geopolitical uncertainty under pinned safe-haven demand, while silver also hovered near all-time highs.
Spot gold climbed 0.9% to $5,060.36 per ounce, as of 0507 GMT, after scaling a record $5,110.50 on Monday.
U.S. gold futures for February delivery eased 0.5% to $5,056.90 per ounce.
Oil fell on Tuesday on expectations of renewed supply from Kazakhstan, but declines were capped by storm-related disruptions to U.S. Gulf Coast production and refining.
Brent crude futures fell 41 cents, or 0.6%, to $65.18 a barrel as at 0740 GMT. U.S. West Texas Intermediate crude was down 30 cents, or 0.5%, at $60.33 a barrel.
