Early Tuesday appears less impressive for the market players as US holidays and a light calendar outside Australia limit momentum. Also challenging the moves could be the hawkish bias about the Fed despite downbeat US data, as well as the lack of clarity about the ongoing US-China talks.
With this, the US Dollar pares recent losses but the AUDUSD struggles to defend the four-day uptrend after the RBA paused the rate hike trajectory while citing the data dependency.
Elsewhere, Oil price cheers talks of Saudi Arabia and Russia’s supply cuts, which in turn weighed on the USDCAD prices. Further, Gold prices also remain firmer while benefiting from the softer USD but EURUSD and GBPUSD stay sidelined as US markets are closed for the Independence Day holiday.
USDJPY drops on chatters surrounding Japan intervention whereas NZDUSD rises on upbeat NZIER updates.
On a different page, BTCUSD and ETHUSD seesaw around multi-day top marked the previous day as a slew of industry players joined together in a battle against the US SEC.
Following are the latest moves of the key assets:
While the US holiday and mixed concerns about the Fed prod market players early Tuesday, amid a light calendar, the RBA offers notable moves to the AUDUSD by surprising markets with no rate change versus forecasts of a 0.25% rate increase. Even so, the Aussie pair reverses after a brief fall as it benefits from US data and the RBA signaled readiness to act if need be.
Apart from the RBA, US Treasury Secretary Janet Yellen’s China visit joins the US readiness to increase hardships for the dragon nation to prod the sentiment. Further, the yield curve inversion flags recession fears and put a floor under the US Dollar, as well as challenging the riskier assets.
Talking about the cryptos, multiple industry players join Coinbase and Binance in their fight against the US SEC to defend the industry interest, which in turn challenges the latest retreat of the BTCUSD and ETHUSD. Also, a slew of institutional investment flow for the ETH adds strength to Ethereum.
While the early-Tuesday inaction is likely to prevail in the European and the US session, amid a light calendar and mixed catalysts, Canadian catalysts and Oil updates may entertain the intraday traders. That said, the Bank of Canada’s sentiment survey will join Canadian PMIs in June to direct USDCAD moves.
May the trading luck be with you!