Posted at 11 February 2025 / Categories Market Roundups
Market Roundup
• Australia NAB Business Confidence (Jan) 4, -2 previous
• Australia NAB Business Survey (Jan) 3, 6 previous
Looking Ahead Economic Data(GMT)
• 09:40 Spanish 3-Month Letras Auction 2.493% previous
•10:30 German 5-Year Bobl Auction 2.420% previous
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
Looking Ahead Events And Other Releases(GMT)
• No Events Ahead
Currency Forecast
EUR/USD: The euro dipped on Tuesday after U.S. President Donald Trump moved to substantially raise tariffs on steel and aluminium imports and said he would announce plans to impose reciprocal tariffs on other countries over the coming days. Traders were also awaiting a testimony from Federal Reserve Chair Jerome Powell later in the day .Recent comments from Fed officials have underscored their no rush approach to further rate cuts, particularly as they wait for further clarity over how Trump's policies will affect economic growth and inflation.Futures point to less than 40 basis points worth of rate cuts priced in by the year-end. The euro was down 0.02% at $1.0305. Immediate resistance can be seen at 1.0328(50%fib), an upside break can trigger rise towards 1.0375(61.8%fib).On the downside, immediate support is seen at 1.0279(38.2%fib), a break below could take the pair towards 1.222(23.6%fib).
GBP/USD: Sterling declined on Tuesday .as dollar remained firm, supported by the recent tariff announcements and expectations of a robust stance on trade. Federal Reserve Chair Jerome Powell is scheduled to testify before Congress this week, addressing the central bank's current stance on inflation and the job market. His remarks are expected to provide insights into the Fed's approach to monetary policy amid recent economic developments. Bank of England policymaker Catherine Mann said companies will struggle to raise prices this year as consumers are hit by job losses and spending softens, the Financial Times reported on Tuesday. Immediate resistance can be seen at 1.2442(50%fib), an upside break can trigger rise towards 1.2553(61.8%fib).On the downside, immediate support is seen at 1.2316(38.2%fib), a break below could take the pair towards 1.2168(23.6%fib)
AUD/USD: The Australian dollar edged higher on Tuesday, boosted by improved global risk sentiment and higher commodity prices. Trump signed proclamations to increase U.S. tariffs on steel and aluminum to 25%, effective March 4, but agreed to consider exempting Australia. Meanwhile, February's Australian consumer sentiment remained low, signaling that inflation isn’t being driven by aggressive consumer spending, which reassured the Reserve Bank. At GMT 05:34, The Australian dollar was last trading up 0.02% to $0.6273 .Immediate resistance can be seen at 0.6321(Higher BB), an upside break can trigger rise towards 0.6381(50%fib).On the downside, immediate support is seen at 0.6249(38.2%fib), a break below could take the pair towards 0.6183(Lower BB).
USD/JPY: The U.S. dollar edged higher on Tuesday as investors awaited insights from Powell's testimony and closely monitored evolving trade policies. Fed officials emphasized a cautious approach to rate cuts, especially as they assess how Trump’s policies might impact growth and inflation. After a 100 basis point rate cut late last year, they’ve signaled no rush to cut rates further. With a strong job market and solid consumer spending, many economists see the U.S. economy in a favorable position, reducing the need for additional rate cuts. Immediate resistance can be seen at 152.19 (Daily high) an upside break can trigger rise towards 153.69(38.2%fib). On the downside, immediate support is seen at 150.87(38.2%fib) a break below could take the pair towards 150.00 (Psychological level).
Equities Recap
Asia stocks dipped on Tuesday following U.S. President Donald Trump's decision to impose 25% tariffs on all U.S. steel and aluminum imports.
Japan’s Nikkei was up 0.06% , South Korea's KOSPI was up by 0.71%,Hang Seng was down by 0.98%
Commodities Recap
Gold shot to a record high, the dollar was firm and stocks were subdued on Tuesday as investors braced for further shifts in U.S. trade policy and waited to hear from Federal Reserve Chair Jerome Powell on tariffs and inflation.
Spot gold climbed to an all-time high of $2,942.70 an ounce during Tuesday's Asian trade, eclipsing the previous peak of $2,911.30 set on Monday and marking the eighth record set so far in 2025.
Oil prices continued to rise on Tuesday due to concerns over Russian and Iranian oil supply and potential sanctions, despite fears that escalating trade tariffs could slow global economic growth.
Brent crude futures were up 55 cents, or 0.72%, at $76.42 a barrel by 0717 GMT, while U.S. West Texas Intermediate crude rose 50 cents or 0.69% to $72.82.