Gold and Oil prices dropped to the fresh two week low on Tuesday morning boosted by the positive developments in the latest round of Russia-Ukraine negotiations. Russian and Ukrainian delegations held the fourth round of talks on Monday. The talks ended without a breakthrough after several hours and Ukrainian President Volodymyr Zelenskyy said the negotiators took “a technical pause” and planned to meet again Tuesday. Zelenskyy also said he spoke with Israeli Prime Minister Naftali Bennett towards ending the war with Russia “with a fair peace.”
Asian shares ended lower on Tuesday despite the release of stronger-than-expected Chinese economic data. Chinese Industrial Production increased from 4.3 percent to 7.5 percent on an annual basis, exceeding the market consensus of 3.9%. While the retail sales sector increased from 1.7 per cent to 6.7 percent.
Crude oil futures fell to a fresh session low on Tuesday during the European session as the oil traders wait for the fresh updates from Russia and Ukraine's fourth-round talks. On the other hand, the recent bearish momentum was also driven by the coronavirus case surge in China.
In the currency market, the British pound trades flat on Tuesday after the release of a better-than-expected UK employment report. The data showed, the UK unemployment rate dropped by 0.2 percentage points to 3.9% in the three months to January. Meanwhile, the Euro holding the early gains the US dollar and the pound after the release of weak German ZEW economic sentiment numbers.
The safe-haven metal dropped to below $1950 on Tuesday as investors pinned hopes on diplomatic efforts between Ukraine and Russia to end their conflict. Overall, the momentum remained bearish throughout the European session.
On the data front, the Reserve Bank of Australia released the last meeting minutes. The minutes said the board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 percent target band.
"There were uncertainties about how persistent the pick-up in inflation would be given recent developments in global energy markets and ongoing supply-side problems," – RBA.
Worldwide, more than 450 million people have been confirmed infected and more than 6 million have died. The United States has confirmed over 79.4 million cases and has had more than 963,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: For today, the resistance for the currency pair is around 1.1045, any break over targets 1.1100/1.1120. On the downside, any meaningful pullback now seems to find some support near the 1.0960 zones, below which the slide could further get extended towards the 1.0935/00 region.
The important levels to watch for today: Support- 1.0960 and 1.0930 Resistance- 1.1045 and 1.1100.
GOLD: For gold, the first nearest support level is located at 1920. In case it breaks below this level, it will head towards the next support level which is located near 1912. On the upside, 1940 will act as an immediate and strong hurdle while 1960 will be a critical resistance zone because above this, bulls are likely to dominate.
The important levels to watch for today: Support- 1920 and 1912 Resistance- 1940 and 1960.
Quote of the day - “The art of investing is not about figuring out what has already happened. It’s about anticipating the future and creating the future that others will read about in The Wall Street Journal.” – Joshua Rogers.
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