Australia: December Trade Deficit hit 1.358 billion dollars. The Reserve Bank of Australia kept Interest Rates unchanged at today’s meeting.
Germany: Factory Orders Report in December to be released at 7:00 GMT. German President Jens Wiedmann is scheduled to speak at 9:00 am (GMT).
France: The First Quarter Investment Report will be released at 7:45 GMT, with December Budget details.
US: Trade Balance Report for December will be released at 13:30 GMT. Fed Chairman Jerome Powell is due to speak at 13:50 GMT. The Jobs Report will be published at 15:00 GMT.
Canada: PMI will be released at 15:00 GMT.
New Zealand: Fourth Quarter Unemployment Report to be released at 21:45 GMT.
Australia: EIG Construction Report will be released at 22:30 GMT.
Auction: The US will auction bills one month at 16:30 GMT, followed by a 3-year note at 18:00 GMT.
The Euro saw weak trading during the Asian Session on Tuesday, trading at a one-week low, after European Central Bank President Mario Draghi testified before the European Parliament on Inflation, as well as open sales on Global Equities.
Mario Draghi said during his testimony before the European Parliament that the Bank has not met the target of Inflation so far, but the Bank’s confidence in Inflation has increased and may continue to rise, but the recent fluctuations of the Euro may pose some risks to Inflation Indicators.
Draghi also noted that Monetary Policy needed more time before the adjustment and that it relied on Economic Data.
Despite recent declines in the EURUSD pair, prices still have to break and hold below support levels at 1.2350 and 1.2330 in order to confirm the continuation of the decline. The breach of the resistance levels close at 1.2400 would affect the recent bearish trend and introduce a sideways trend.
The Reserve Bank of Australia kept Interest Rates unchanged for the 16th consecutive session, pointing out that rising Australian Dollar levels threaten to hurt exporters and increase negative pressure on Inflation.
“The interest rate is continuing to support the Australian economy,” said the head of the Bank of Australia in a statement accompanying the interest rate.
More progress is expected to be made in reducing unemployment and returning inflation to the target, although progress could be gradual, he said.
Technically, the return of selling pressures on the pair’s move would reinforce the previous bearish trend. A break below the support levels near 0.7845 will consolidate the declines and open the door to test the 0.7800 levels. Only a return above the resistance at 0.7865 would ease the selling pressure temporarily.
The US Dollar rose against the Yen on Tuesday after two sessions of decline as Investors looked to safe havens as Global Indices weakened.
Despite recent declines in the pair, prices still have to break and hold below the support levels at 108.40 and 108.20 in order to confirm the continuation of the decline. A break of the resistance levels close at 109.00 would affect the recent bearish trend and introduce a sideways trend.
Gold prices advanced on Tuesday, doing so for the second day in a row after support was found for rising demand for safe haven in financial markets amid open selling on Global Equity Indices.
Wall Street Stock Markets saw sharp declines yesterday, including Asian Stocks, which recorded the highest drop in more than a year and a half, while stocks in Tokyo fell by 5%.
The rebound in the price of the precious metal, and a breach of the near resistance levels at 1344 will strengthen the optimism and cause a test at the price levels of 1350. A return of prices below the 1340 resistance level is likely to temporarily alleviate the optimism.