The US dollar index plunged to a below the previous month low of 92.50 on Tuesday as investors remain bearish on the dollar due to the uncertainty over whether US lawmakers would strike an agreement on a new coronavirus relief package.
Asian markets traded mixed on Tuesday as investors remained concerned about growing tensions between the US and China and lack of movement on a new US stimulus. On Monday, Wall Street ended mixed, the Dow Jones closed in negative territory while S&P 500 and the Nasdaq Composite rallied to a new session high.
Crude oil price trading steady on Tuesday after OPEC+ confirming that countries were almost completely complying with deeper supply cuts in the wake of fall in demand due to the coronavirus crisis.
In The currency market, the Euro and the British pound surged to session highs supported by the weaker dollar. The EUR/USD climbed back to above 1.19(psychological level) during the European session boosted by positive comments from ECB Vice President Luis De Guindos. He said that the European banks are unlikely to recover until 2022.
The gold price surged to fresh weekly high on Tuesday, as a weaker dollar and a pull-back in US Treasury yields boosted demand for the safe-haven metal. In addition, there is no progress regarding another fiscal stimulus package, which remains entrenched within discussions among US lawmakers.
On the US-China front, US announced more restrictions on Chinese tech giant Huawei, adding another 38 of its affiliates in 21 countries to its blacklist to limit adoption of Huawei’s 5G technology.
On the next US stimulus package front, Treasury Secretary Steven Mnuchin said that he and President Donald Trump were ready to disburse funds but blamed the holdup on the Democrats.
The number of people infected with the coronavirus across the world hit the 21.9 million mark, of which at least 774 thousand people have died and 13.9 million have recovered, according to data released by the Johns Hopkins University. China reports 22 new coronavirus cases for Monday, the same as the tally a day earlier. India's virus fatalities surpass 50,000 as total infections surge to nearly 2.65 million with a daily increase of 57,981. Meanwhile, the U.S. drug developer Novavax says it has begun mid-stage clinical trials of a COVID-19 vaccine candidate in South Africa.
XAU/USD: The gold price trading steady above $2000 during the European session, if the bullish momentum continues the next level to watch $2030 then $2075.
The important levels to watch for today: Support- 1990 and 1960 Resistance- 2030 and 2050.
Dollar Index: The US Dollar index dropped back to the previous month low of 92.50 ahead FOMC meeting minutes tomorrow.
The important levels to watch for today: Support- 92.00 and 91.60 Resistance- 93.40 and 94.00.
Quote of the day: The best traders have trading habits, daily routines they repeat day after day- Henrique M. Simoes.
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