NZD/USD climbed to a fresh weekly high of 0.7235 on Tuesday ahead of the RBNZ interest rate decision and statement which is set to be announced at 02.00 GMT on Wednesday. RBNZ expected to leave the interest rates unchanged. The future direction of the New Zealand dollar will depend on the RBNZ policy statement.
Wall Street ended higher on Monday after the Federal Reserve officials tried to soothe concerns about inflation. European shares traded higher on Tuesday despite weaker-than-expected German GDP data.
Crude oil prices slightly retreat from the early session highs ahead of API inventory data. During the last week, the API data showed a 0.62-million-barrel increase in US weekly inventories.
In the currency market, the EUR/USD climb to above the previous week high on Tuesday. At the time of writing, the currency pair trading above 1.2250. The British pound rebounded back to above 1.42 supported by the positive comments from Bank of England Governor Andrew Bailey. Bailey said he does not see inflation causing a serious problem in the medium to long term.
The safe-haven metal price recovered from the Asian session losses and now testing the key resistance area $1888. Overall, the momentum remains bullish throughout the European session.
On the data front, German GDP data reported weaker-than-expected. The data showed the GDP fell 1.8% in the last quarter, slightly worse than a preliminary estimate of 1.7%. Meanwhile, the German IFO business climate data came better than expected.
Moving ahead today, the important events to watch:
US – CB consumer confidence: GMT – 14.00
US – New home sales: GMT – 14.30
Worldwide, more than 167.1 million people have been confirmed infected and more than 3.4 million have died. The United States has confirmed over 33.1 million cases and has had more than 589,000 deaths from COVID-19, the highest totals in the world.
Dollar index: US dollar Index break below the previous support area of 89.60, the next crucial demand area to watch this week 89.20.
The important levels to watch for today: Support- 89.40 and 89.20 Resistance- 89.70 and 90.
GOLD: The gold price hovers near the resistance zone of $1889. Any break above the level the next upside level to watch $1895. On the flip side, the immediate support at $1870.
The important levels to watch for today: Support- 1872 and 1865 Resistance- 1889 and 1895.
Quote of the day: Successful investing is anticipating the anticipations of others – John Maynard Keynes.
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