The dollar hit a more than two-year high against the euro. The greenback has strengthened against the euro as economic data shows a brighter economic outlook for the United States than for the eurozone.
Asian share market rally paused on Thursday while Wall Street closed at record highs on Wednesday. The S&P 500 and the NASDAQ have now set closing highs for three consecutive sessions. The Dow reached its most recent closing record on Feb 6.
Oil prices climbed third consecutive day as hopes rise for OPEC and allies to implement deeper curbs in crude production to offset the impact of the coronavirus outbreak. U.S. crude stockpiles rose more than the market was expecting last week, the Energy Information Administration reported Wednesday.
EURO plunged to its weakest level since May 2017 after breaking below 2019 October’s low. The currency affected by Eurozone growth concerns and dovish ECB expectations. The yen rose from a three-week low against the dollar on Thursday as investors sought safe havens after China’s Hubei province, the epicentre of a coronavirus outbreak, reported a sharp jump in the number of new cases.
Gold prices traded little changed after touching a one-week low as risk sentiment improved. The yellow metal rose on Thursday in Asia after China reported a sharp jump in the death toll and confirmed cases from the coronavirus.
On Wednesday the US Treasury Secretary Steven Mnuchin expressed confidence that the coronavirus outbreak’s economic impact will not last beyond this year.
Coronavirus update: According to China’s National Health Commission, 2,015 new cases of the virus have been reported over the past 24 hours.
Today the main economic releases the investors waiting for US inflation data. The greenback may gain more bullish momentum in case of a positive CPI report during the US session today.
AUD/USD: The pair retraced back to 0.6705 after the dollar gained strong upside momentum. The next immediate support around 0.6700$ and if the pair breaks 0.67 then 0.6670 will be crucial.
Gold: The yellow metal gained some upside momentum and trading above resistance level 1573$. The next immediate resistance will be 1580$ and 1584$.
Quote of the day: Successful trading is about finding the rules that work and then sticking to those rules- William J. O’Neil.