The Australian dollar tumbled on Tuesday following a dovish stance by the RBA on its cash rate. Traders eye the Reserve Bank of New Zealand rate decision scheduled for early Wednesday where a 25bps hike is expected. The greenback continued down in the European session as investors awaited the US Jolts’ job openings and factory orders.
GBPAUD appreciated by +1.26% following the RBA meeting early in the Asian session. The Reserve Bank of Australia kept its key rates unchanged at 3.60% in April justifying the dovish move with a fall in inflation and retail sales data. The sterling got boosted by a positive risk mood in the session ahead of PMI data from the UK. Bulls rallied from 1.8281 as 1.8600 may be a hurdle before reclaiming 1.8780.
USDCAD extended its slide by -0.12% on continued dollar weakness. The greenback remained subdued as market participants kept bets of a nearing end to the Fed tightening path. Supporting the buck’s downside move was also the ISM Manufacturing Index which showed that manufacturing slumped more than expected in March. In Canada, the currency continues to ride on the back of rising oil prices after the OPEC output cut as traders await the Canadian trade balance and building permits data later in the day. Traders eye the release of Factory orders and JOLTs job openings from the US today. The pair slid from 1.3444 with a possible target at 1.3380.
EURNZD traded +0.21% higher in the European session following mixed data from the Eurozone ahead of the RBNZ. Data from the Federal Statistical Office of Germany showed that the trade balance from the country was unchanged from the previous month at 16.0 billion. The Euro area producer prices were less than anticipated at 13.2% vs 13.3% estimates on a year-on-year basis. Meanwhile, in New Zealand, the central bank is forecast to add 25 basis points to its cash rate to 5.00% from 4.75% at their April meeting. The pair left a low at 1.7268 as buyers may target 1.7400.
European stocks were quite mixed after a slide in the Producer Price Index. The DAX rose +0.61% to 15750 from a low of 15600. A move higher may extend to 15800. CAC40 gained +0.22% as bulls approached 7400. Further up buyers may seek 7500. The UK100 was down -0.22% back below the 7700 psychological mark. The slide may give sellers 7600 and 7550.
US stock futures traded higher as investors await the US job openings data. The S&P 500 futures gained +0.34% after buyers took over from 0.6780 as targets may be seen at 0.6822 on the rally. Dow Jones Industrial Average futures rose +0.19% above 33600, a 6-month high. An extended leg up may give buyers 33820. Nasdaq100 futures soared +0.50% trading a few moves away from 13250. Further up, bulls may reclaim 13380.
Elsewhere, bitcoin kept its footing around the $28 000 region as the dollar continued down. BTCUSD was up +1.60% though a move above $29 500 may be needed for strong buying.