Today the US, Fed’s Chair Powell is due to testify on the Semi-annual Monetary Policy Report before the House Financial Services Committee, in Washington DC. Traders and investors will be watching to see whether Powell seems prepared to move away in the Fed’s neutral stance on rates of interest.
Asian markets continue the second gains on Tuesday as most China’s factories re-open after an extended break. On Monday The S&P 500 and the NASDAQ closed record high. One of the notable gains was Tesla rose 3.1% after its Shanghai factory resumed production. Japan’s Nikkei was closed for a holiday.
Oil prices dipped on weaker Chinese demand due to the coronavirus, and traders waited to see if Russia would join other producers in seeking further output cuts.
The New Zealand dollar trading weaker around 0.6385$ ahead of a central bank policy meeting on Wednesday Asian session. . While the Australian dollar trading steady on Tuesday, after rebounding from yearly low. Euro hit 4 months low against the dollar on Tuesday and currently trading 1.0908.
Gold prices are trading weaker on Tuesday after climbing to a one-week high on Monday. The Investors waiting for the Fed chairman’s testimony as markets look for clues about the US central bank’s outlook.
Markets are trading cautiously as China reopens some of its factories and tries to bounce back to business. Today the important events to watch,
- UK GDP: 09.30 GMT
- ECB’s President Lagarde speaks(presentation of the 2018 ECB Annual Report) : 14.00 GMT
- The US, Fed’s Chair Powell Testifies: 15.00 GMT
AUD/USD: As per our previous recommendation Price has bounced again from the previous low with a bullish engulfing candlestick. If the pair continues moves higher the next important level to watch the previous week high 0.6775.
Gold: The yellow metal trading below $1570 on Tuesday after climbed fresh week high to $1575. If the price continues to fall, the next important level is $1565 and $1560. On the upper side the immediate resistance at $1575 previous high above that $1580 the trend line resistance.
Quote of the day: In trading, we cannot direct the wind, but we can adjust our sails. And that’s all you need to know and do- Mark Minervini.