The EUR/USD slightly retreated from the daily highs after the Eurozone unemployment rate came above the forecasts. The unemployment rate came at 8.3% in February 2021, above market expectations of 8.1%.
Wall Street ended higher on Monday boosted by strong ISM service PMI data, both Dow Jones and S&P500 surged to record closing highs overnight. The ISM Service PMI for March rose from 55.3 to 63.7 points and Markit Service PMI increased slightly, from 60.0 to 60.4 points.
Crude oil prices recovered from the previous session losses. On Monday, the oil prices plunged worries about rising oil supply receded amid a further easing of lockdown restrictions in the UK.
In the currency market, the commodity currencies Australian dollar fell to a fresh week low following the bearish comments from RBA governor Philip Lowe. Meanwhile, the US dollar Index struggling to find the upside momentum after the index falls back to below 93.00 psychological level.
The safe-haven metal climbed to a fresh weekly high of $1738 on Tuesday supported the slow vaccine rollouts in Europe and rising COVID-19 cases in India and Brazil.
On the data front, RBA holds the cash rate steady at a record low of 0.10%. “The board will not increase the cash rate until actual inflation is sustainably within the 2 to 3 per cent target range.” RBA governor Mr Lowe said in the statement. "The board does not expect these conditions to be met until 2024 at the earliest," Mr Low added.
Worldwide, more than 131.2 million people have been confirmed infected and more than 2.85 million have died. The United States has confirmed over 30.7 million cases and has had more than 560,000 deaths from COVID-19, the highest totals in the world.
EUR/USD: The currency pair trading steady above 1.1800 after the US Dollar gives back some of the previous week gains.
The important levels to watch for today: Support- 1.1780 and 1.1740 Resistance- 1.1820 and 1.1840.
GOLD: The yellow metal trading weaker below $1740 supported by $1720. Today, gold is again expected to face resistance around $1744 along with support around $1720 and $1714.
The important levels to watch for today: Support- 1730 and 1720 Resistance- 1738 and 1744.
Quote of the day: The markets are unforgiving, and emotional trading always results in losses- Alexander Elder.