Market Roundup
•Canada Feb Reserve Assets Total 116.3B , 116.3B previous
•US Redbook (YoY) 3.1%,2.7% previous
•US Feb S&P Global Composite PMI 52.5,51.4 forecast,52.0 previous
•US Feb Services PMI 52.3,51.3 forecast,52.5 previous
•GlobalDairyTrade Price Index -2.3%,0.5% previous
•US Feb ISM Non-Manufacturing Business Activity 57.2,55.8 previous
•US Feb ISM Non-Manufacturing New Orders 56.1, 55.0 previous
•US Feb ISM Non-Manufacturing Prices 58.6,64.0 previous
•US Feb ISM Non-Manufacturing Employment 48.0, 50.5 previous
•US Feb ISM Non-Manufacturing PMI 52.6, 53.0 forecast,53.4 previous
•US Jan Factory Orders (MoM) -3.6%, -3.1% forecast,0.2% previous
•US Jan Durables Excluding Defense (MoM) -7.4%,-7.3% previous
Looking Ahead Economic Data(GMT)
•22:00 Australia Feb AIG Construction Index -11.5 previous
•22:00 Australia Feb AIG Manufacturing Index -23.8 previous
•00:30 Australia GDP (YoY) (Q4) 1.4% forecast,2.1% previous
•00:30 Australia Retail Sales (MoM)1.1% forecast,-2.7% previous
•00:30 Australia GDP (QoQ) (Q4) 0.2% forecast,0.2% previous
Looking Ahead Events And Other Releases(GMT)
•No Events Ahead
Currency Summaries
EUR/USD: The euro dipped against dollar on Tuesday as investors braced for a busy week that includes a European Central Bank rate decision. The ECB meets to discuss policy on Thursday but is widely expected to leave interest rates at a record 4%. Investors will be on the lookout for any hints about when rates might start to fall and will scrutinise updated economic projections.Survey data on Tuesday showed that business activity in the euro zone showed signs of recovery last month. Immediate resistance can be seen at 1.0880(23.6%fib), an upside break can trigger rise towards 1.0903(Higher BB).On the downside, immediate support is seen at 1.0847(38.2%fib), a break below could take the pair towards 1.0816 (50%fib).
GBP/USD: The British pound steadied against the dollar on Tuesday as trader eagerly awaited of UK budget announcement. British finance minister Jeremy Hunt is expected to announce measures to boost the economy and Prime Minister Rishi Sunak's hopes of winning an election later this year in a budget statement on Wednesday.Tuesday's survey showed order books for services firms grew at the fastest pace since last May, boosted by optimism among clients about the prospect of the Bank of England cutting interest rates. Sterling rose 0.09% to $1.2702.Immediate resistance can be seen at 1.2731(23.6%fib), an upside break can trigger rise towards 1.2765 (Feb 2nd high).On the downside, immediate support is seen at 1.2671(38.2%fib), a break below could take the pair towards 1.2626(50%fib).
USD/CAD: The Canadian dollar dipped against the U.S. dollar amidst a decline in stock markets, although the movement was constrained ahead of the upcoming Bank of Canada interest rate decision later this week. Wall Street's main indexes fell, influenced by weakness in megacap growth stocks like Apple and Tesla, which put pressure on the Nasdaq. Additionally, the price of oil, a significant export for Canada, closed 0.8% lower at $78.15 per barrel. The Canadian services sector remained in contraction in February but the pace of decline eased as the prospect of interest rate cuts boosted firms' optimism in the outlook for the economy, S&P Global Canada services PMI data showed. The loonie was trading 0.1% lower at 1.3585 to the U.S. dollar. Immediate resistance can be seen at 1.3598 (23.6%fib), an upside break can trigger rise towards 1.3620 (Higher BB).On the downside, immediate support is seen at 1.3557(Daily low), a break below could take the pair towards 1.3516 (38.2%fib).
USD/JPY: The dollar dipped against yen on Tuesday after data showed U.S. services industry growth eased, while investors awaited congressional testimony from Federal Reserve Chair Jerome Powell and U.S. jobs data. U.S. services industry growth slowed a bit in February amid a decline in employment, according to the Institute for Supply Management (ISM). Separately, data showed new orders for U.S.-manufactured goods dropped more than expected in January.The dollar index , which measures the buck's strength against a basket of six currencies, is up about 2.3% for the year, lifted by better-than-expected U.S. economic data, but the currency's rally has stalled in recent sessions, as investors await clarity on Fed policy. Strong resistance can be seen at 150.75(23.6%fib) an upside break can trigger rise towards 151.30(Higher BB).On the downside, immediate support is seen 149.52(38.2%fib), a break below could take the pair towards 148.86(Lower BB )
Equities Recap
Europe's main index dipped on Tuesday,driven by weakened mining shares due to the lack of significant stimulus from China, the top consumer of metals, while investors remained cautious as they awaited this week's release of economic data from both the euro zone and the U.S., alongside an upcoming ECB policy decision.
UK's benchmark FTSE 100 closed up by 0.08 percent, Germany's Dax ended down by 0.03 percent, France’s CAC finished the day down by 0.30 percent.
Wall Street stocks fell, primarily influenced by the underperformance of megacap growth shares like Apple Inc. and the chip sector, ahead of anticipated economic data releases and remarks from Federal Reserve Chair Jerome Powell later in the week.
Dow Jones closed down by 1.04%% percent, S&P 500 closed up by 1.01%% percent, Nasdaq settled down by 1.65%% percent.
Commodities Recap
Gold hit a record high on Tuesday, fueled by increasing expectations of U.S. Monetary Eeasing and persistent geopolitical tensions
Spot gold rose 0.8% to $2,130.79 per troy ounce as of 1540 GMT, after touching its record high of $2,141.59.
Oil prices fell nearly 1% on Tuesday amid doubts over china's economic growth target and decreased investor risk appetite despite weaker U.S. dollar.
Brent crude futures settled 76 cents, or 0.9%, lower at $82.04 a barrel, while U.S. West Texas Intermediate crude futures fell 59 cents, or 0.8%, to $78.15 a barrel.
