AUDUSD prints the biggest daily gains in 13 days as the RBA surprises markets with a 0.25% rate hike, versus the expectation of no change in the current monetary policy. Adding strength to the Aussie pair’s upside are headlines from the IMF suggesting strong Asia-Pacific growth led by China and India.
That said, the markets remain cautiously optimistic as the First Republic fears ease after JP Morgan took over the troubled US bank’s assets. Furthermore, recently mixed US data and consolidation ahead of the top-tier factors scheduled for release during the week also favored the upbeat sentiment, which in turn weighs on the US Dollar and yields.
NZDUSD came in second place to cheer the US Dollar's weakness amid RBNZ’s hawkish remarks whereas the USDJPY bucks the trend with mild gains on dovish bias surrounding the BoJ. Furthermore, EURUSD rallies ahead of the key preliminary Eurozone inflation data whereas prices of Gold remain sidelined but those of Crude Oil improve on China concerns and softer USD.
However, the Cryptocurrencies struggle to cheer the market’s mildly upbeat sentiment, as well as the US Dollar, amid regulatory fears and pre-event anxiety.
Following are the latest moves of the key assets:
RBA ignored unimpressive inflation numbers and subdued employment data to trigger a stellar AUDUSD rally early Tuesday. Adding strength to the run-up could be the headlines suggesting likely upbeat growth prospects for the Asia-Pacific zone, backed by the IMF analysis. Furthermore, US debt ceiling expiration fears joined the mixed US data and pre-event consolidation to prod the US Dollar buyers.
Having witnessed a notable move during the early hours of the day, market players may witness cautious performance ahead of the first estimations of the Eurozone inflation and the US Factory Orders. Furthermore, chatter around the US debt ceiling and growth, as well as central bank rate hikes, could also entertain market players.
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