The RBA raised its cash rate by 25bps to over a decade high though indicated a peak in inflation. Rising tensions between the US and China also weighed on the sentiment. Oil prices slumped pulling the CAD down along with it on negative imports data from China ahead of oil stockpiles data. Traders look at RBA Governor Philip Lowe’s speech which comes after Fed’s Jerome Powell’s testimony.
AUDUSD was vulnerable below the 0.6700 mark despite the hawkish RBA. The Reserve Bank of Australia said in a statement they would continue tightening to fight inflation although they have acknowledged that inflation is peaking and may slow down on rate hikes. This came after raising the cash rate to 3.60%, above a decade high. Investors await Fed Chair Powell`s two-day testimony. The pair lost -0.93% as sellers slid towards 0.6650 and 0.6600.
EURGBP plummeted -0.16% following upbeat UK data. The BRC retail sales monitor showed that sales increased by a percentage to 4.9% from 3.9% on a year-on-year basis in February. Adding on, the housing sector in the UK realized some growth, having the house price index rising to 1.1% from an estimate of -0.3%. In the Euro space, the Germany Factory Orders surprised to the upside coming at 1.0% vs -0.9% anticipated. Looking ahead, BoE Deputy Governor Sam Woods will be giving a speech later in the day. The pair fell from an intraday high of 0.8887 as the 0.88400 low became a key figure on the slide. To the upside, bulls may seek 0.8900.
NZDCAD rose +0.20% as the positive risk tone acted as a tailwind for the New Zealand Dollar. Also helping the NZD was upbeat trade balance data from China, its biggest trade partner, which rose to 116.88 billion from an estimated 81.80 billion. The Canadian dollar traded lower, weighed down by falling crude oil prices ahead of the BoC meeting on Wednesday. The New Zealand economic file will feature the GlobalDairyTrade price index. The pair may face resistance at 0.8500 before we could see an extended leg to 0.8550.
European stocks traded higher after stronger-than-expected economic data from the Eurozone. The German factory orders jumped along with the UK housing index. The FTSE100 gained +0.17% despite being bound in a range capped by 8000 and supported by 7850. The CAC40 rose +0.24% as bulls struggled to move above the 7400 high after rising from the 7345 low. In Germany, the DAX was up +0.32% trading above the 15650 mark as 15750 may be up next on the rally before 16000.
In the US futures traded on the upper ground ahead of Jerome Powell’s testimony. The US500 futures were up +0.17% caught in between intraday levels at the 4048 low and 4060 high. US30 futures +0.08% from 33430 capped by 33500. The US100 futures gained +0.36% from 12300 as targets to the upside may be seen at 12500.
Additionally, crude oil prices were down on negative Chinese imports data. The data showed that the country took in lesser imports in February weighing on the black liquid’s prices. Later on the day, the EIA will be publishing its short-term energy outlook along with the release of the API weekly crude oil stock. Brent crude oil slumped by -0.36% now below the $86.00 mark as sellers may revisit $84.00. The US WTI lost -0.46% from the $81.00 level. Further down bears may reclaim $77.50.