US Dollar trades below 2-year low as Investors and traders now wait for the US Federal Reserve monetary policy meeting minutes due later in the day. During the last FOMC meeting, the central bank left the policy unchanged as expected, but Fed Chair Powell reiterated that they stood ready to offer more support to the economy if necessary.
Australian stocks traded higher on Wednesday after the Australian Government signed an agreement with UK-based drug company AstraZeneca to secure the potential COVID-19 vaccine developed by Oxford University if its trials prove successful. On Tuesday, the Wall Street ended higher, the S&P500 closed above its February, and an all-time high. On the other hand, the Dow Jones Industrial Average dropped 0.2%, while the Nasdaq Composite was up 0.7%.
Crude Oil price trading slightly lower on Wednesday ahead to data on U.S. crude oil inventories and OPEC meeting. Meanwhile, the API data showed, the crude oil inventories reported better-than-expected with a decline of 4.26M barrels compared to a decline of 2M forecasted.
In The currency market, the Dollar index hit 27- months low while EUR/USD climbed to fresh month high of 1.1965 during the previous session. The British pound rose to more than 8-month highs boosted by stronger-than-expected UK inflation data.
The gold price slightly reversed from the fresh weekly highs, on Tuesday the precious metals surged back to above $2000 level.
On the US-China front, Trump said recently “I don’t want to deal with them now. With what they did to this country and to the world, I don’t want to talk to China right now.” Meantime, China adamantly opposes the latest U.S. actions against Huawei, Foreign Ministry spokesman Zhao Lijian tells regular news briefing Tuesday in Beijing. Zhao reiterated China’s willingness to retaliate against U.S. actions and said the U.S. move is "nothing short of bullying."
On the next US stimulus package front, US Secretary State Steven Mnuchin said that US President Donald Trump wanted to move forward with more economic aid, amid the coronavirus pandemic. While the Democratic leader of the lower chamber of Congress said a compromise was possible to reach a deal on a new US fiscal stimulus package.
The number of people infected with the coronavirus across the world hit the 22.1 million level, of which at least 781 thousand people have died and 14.1 million have recovered, according to data released by the Johns Hopkins University. Meanwhile, the Prime Minister of Australia, Scott Morrison, said that Australia had secured access to a promising vaccine, which means that, if clinical trials are successful, the deal with AstraZeneca will secure “early access for every Australian.”
XAU/USD: The gold price trading below $2000(psychological level) level during the European session ahead of FOMC meeting minutes tonight.
The important levels to watch for today: Support- 1980 and 1960 Resistance- 2015 and 2030.
EUR/USD: The currency pair trading unchanged on Wednesday after hitting the fresh weekly high of 1.1965 during the previous session.
The important levels to watch for today: Support- 1.1900 and 1.1860 Resistance- 1.1970 and 1.2000.
Quote of the day: Profits can be made safely only when the opportunity is available and not just because they happen to be desired or needed- Gerald M Loeb.
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