Reserve Bank of Australia kept the cash rate unchanged at a record low of 0.25% during its October meeting. The central bank said the decision was based on the uneven recovery of the global economy due to the coronavirus. The RBA also kept its target yield for three-year government bonds at that same level.
"The global economy is gradually recovering after a severe contraction due to the pandemic. However, the recovery is uneven, and its continuation is dependent on containment of the virus," RBA Governor Philip Lowe said.
US futures trading steady on Tuesday after U.S. President Donald Trump was discharged from hospital following treatment for COVID-19 and hopes of a new US stimulus package. On Monday, the Dow Jones Industrial Average gains 1.68%, while the S&P 500 climbs 1.8%.
Crude oil prices surged higher supported by the evacuation of oil platforms in the US Gulf of Mexico ahead of Tropical Storm Delta and positive reports about President Donald Trump's health.
In the currency market, the EURO climbed to near 1.1800 area boosted by upbeat German factory orders and Eurozone retail sales data. On the other hand, the Australian dollar fell after the RBA left its cash rate at a record low.
Gold price slightly retreated from the highs. Moving ahead to the North American session the gold traders are focused on the speech by the US Fed Chairman Jerome Powell. He will speak about the economic outlook later in the day.
On the data front, ISM Services PMI in the US in September rose from 56.9 to 57.8 points against the forecast of a decline to 56.3 points. Meanwhile, UK Construction PMI rose to 56.8 in September 2020, up from 54.6 in the previous month and well above market expectations of 54.0.
US House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin plan to speak again on Tuesday about the new coronavirus aid bill.
After just three nights being treated for COVID-19, US President Donald Trump was discharged from the hospital. Global coronavirus cases have reached 35,485,738, according to Johns Hopkins University in Baltimore. The worldwide death toll has hit 1,044,085. The United States has passed 7.4 million confirmed cases, with over 209,000 deaths from COVID-19, the highest numbers in the world. India reports a spike of 61,267 new Covid cases & 884 deaths in the last 24 hours.
GBP/USD: The currency pair slightly retreated from the daily tops. At the time of writing, the British Pound hovers near 1.2980.
The important levels to watch for today: Support- 1.2970 and 1.2940 Resistance- 1.3035 and 1.3080.
GOLD: The yellow metal trades steady above $1900, during the previous session the gold price failed to break above the previous week highs.
The important levels to watch for today: Support- 1906 and 1900 Resistance- 1918 and 1926.
Quote of the day: Successful investing is anticipating the anticipations of others – John Maynard Keynes.
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