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DAILY MARKET REPORT

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The Kiwi pairs are rebounded sharply after hawkish comments from RBNZ. The RBNZ left the cash rate on hold as expected at 1%. New Zealand dollar jumped 1% to $0.6475, its sharpest rise in two months.

EQUITIES

Asian markets trading higher on Wednesday following the Wall Street gains on Tuesday. Both the S&P 500 and the NASDAQ surged to a fresh high in New York on Tuesday. Shares in Hong Kong rose 0.9% to a three-week high. Australian shares were up 0.47%, while Japan’s Nikkei stock index rose 0.53%.

OIL

Oil prices gained some bullish momentum on Wednesday after the American Petroleum Institute (API) reported that US crude oil inventories rose sharply last week.

CURRENCIES

GBP/USD continues the second-day bullish run after better than expected GDP data, which released in the previous trading session. The day’s big currency mover was the New Zealand dollar, which rose 0.8% for its biggest daily gain since December, after the central bank dropped a reference to further rate cuts, suggesting its easing cycle might be over.

GOLD

Gold prices edged lower on Wednesday as new coronavirus cases fell and risk appetite improved, although uncertainty over the economic impact of the outbreak still underpinned bullion.

Economic Outlook

Today we don’t many economic releases, except the Fed Chair Powell’s testimony. Overnight, Investors took FED Powell’s comment as positive. He said fed is closely monitoring the fallout from the deadly coronavirus outbreak in China. He added “The FOMC believes that the current stance of monetary policy will support continued economic growth, a strong labor market, and inflation returning to the Committee’s symmetric 2 percent objective.

Technical Outlook

AUD/USD: The pair enjoying the third-day upside move. Aussie pair got more strength after the number of new coronavirus cases was falling in some provinces. The next upside level to watch 0.6775 and above that 0.68.

Gold: The yellow metal trading weaker below $1565 supported by $1560. Today, gold is again expected face resistance around $1,573 along with the support around $1560 and $1555.

Quote of the day: The act of saving and investing money regularly will significantly change the way you live your life in the future.

 

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