The Reserve Bank of New Zealand raised interest rates by 25 basis points to 1% today. The path for interest rates is clearly higher as the bank faces rising inflation. The central bank has signalled that it will continue to take a more aggressive approach to tighten monetary policy.
“A further reduction in monetary policy stimulus is appropriate to maintain price stability. It also supports sustainable employment at full potential.” – RBNZ said.
US futures slightly rebounded while the overall momentum remains mixed after the United States announced its first set of sanctions against Russia. Meanwhile, as per the latest reports says the meeting between the US Secretary of State Blinken, and the Russian Minister of Foreign Affairs has been cancelled.
On the earnings front, Fubo TV, Lowe’s and eBay are amongst those reporting the last quarter's financial results today.
Crude oil futures ended lower on Tuesday while seems the downside is limited due to the potential disruption of energy supplies from Russia. On the other hand, the oil investors also waiting for fresh updates on nuclear talks. Yesterday, Iran Foreign Ministry spokesman Khatibzadeh noted that significant progress has been made in reviving the 2015 nuclear deal.
In the currency market, the US dollar remains steady as Investors have been buying into the safe-haven currency as global market sentiment remains cautious. While the EURUSD rebounded back to above 1.1340 following the comments from the ECB policymaker, Robert Holzmann, the focus now shifted to Eurozone inflation data.
The Safe-haven metal struggling to find the upside momentum above $1900. However, the fundamental picture is generally quite optimistic, and the geopolitical tensions provide additional support to quotes.
On the data front, U.S. consumer confidence declined modestly this month but remains high, the consumer confidence index dipped to a reading of 110.5 this month, the lowest since last September, from 111.1 in January. US Manufacturing PMI increased to 57.5 in February of 2022 from 55.5 in January, beating forecasts of 56.
Worldwide, more than 420 million people have been confirmed infected and more than 5.9 million have died. The United States has confirmed over 77 million cases and has had more than 910,000 deaths from COVID-19, the highest totals in the world.
Technical Outlook and Review
EURUSD: For today, the resistance for the pair is above 1.1350, any break over targets 1.1380 minimum. On the other side, the immediate support is near 1.1300 and any break will drag the pair to 1.1270 and 1.1250 levels.
The important levels to watch for today: Support- 1.1300 and 1.1250 Resistance- 1.1350 and 1.1390.
GOLD: The precious metal remains under pressure a clear breakdown of the support at $1,890 could open space for further declines while only recovery to $1,905 would reverse the short-term negative trend.
The important levels to watch for today: Support- 1890 and 1884 Resistance- 1905 and 1915.
Quote of the day - “If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in. There is nothing better than a fresh start.” Paul Tudor Jones.