EUR/USD climbed to more than 2- year high of 1.1995 on Tuesday supported by a weaker dollar. At the time of writing, the currency pair slightly retreated from the daily highs after mixed economic data. The US dollar has been falling following the speech by Chief Jerome Powell at the Jackson Hole Symposium last week.
Chinese shares recovered the early losses after the Caixin PMI for China showed manufacturing growth was the strongest since 2011. On Monday, Wall Street ended lower while the Nasdaq Composite Index gained 0.7% boosted by tech shares.
Crude Oil prices trading steady ahead of the API data today. During the last week, the API data showed a 4.5-million-barrel decline in US weekly inventories, versus a draw of 2.7-million-barrels expected by analysts.
In the currency market, the US dollar remained under selling pressure against its pairs. The British pound climbed to the highest since December, helped by dollar weakness and after Japan's foreign minister said a broad agreement on a Japan-UK trade deal was close.
Gold price surged to fresh weekly high on Tuesday driven by a weaker dollar on expectations that US Federal Reserve will keep short-term interest rates near zero for some time.
On the data front, China’s Caixin manufacturing PMI for August rose to 53.1 from July’s 52.8 while analysts expected a slight decline to 52.6.
The Reserve Bank of Australia kept interest rates unchanged, as expected. RBA Governor Lowe said that the “Board will maintain highly accommodative settings as long as is required and continues to consider how further monetary measures could support the recovery.
The number of people infected with the coronavirus across the world hit 25.4 million, of which at least 850 thousand people have died and 16.8 million have recovered, according to data released by the Johns Hopkins University. The US has more than 180 thousand coronavirus-related deaths, followed by Brazil (120,828) and India (64,469). Meanwhile, Phase 3 trials of the much-awaited Oxford COVID-19 vaccine will begin in the United States on Tuesday. The beginning of the trials came in after Trump’s push to fast-track the development of a vaccine.
XAU/USD: The gold price trading steady above $1985 on Tuesday supported by $1965 and $1940. If the bullish momentum continues the next upside to watch $2000 and $2025.
The important levels to watch for today: Support- 1980 and 1965 Resistance- 1995 and 2000.
GBP/USD: The currency pair hovers near the daily session highs of 1.3440, overall, the momentum remained bullish throughout the European session.
The important levels to watch for today: Support- 1.3400 and 1.3370 Resistance- 1.3450 and 1.3500.
Quote of the day: The consistency you seek is in your mind, not in the markets - mark Douglas.
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