Market Overview
- WTI crude oil price nears $70.95 in early Asian trading as Trump threatens Russia with oil tariffs if they interfere in Ukraine.
- EUR/USD remained near the 1.0800 level on Tuesday as investors awaited tariff announcements from the Trump administration.
- The Reserve Bank of Australia (RBA) Assistant Governor Christopher Kent announced changes to repo rates, increasing the price of new Omo Repos and introducing a seven-day term.
- US Treasury Secretary Scott Bessent stated that the announced tariffs are at their highest level and could be reduced by countries.
- The USD/CAD pair falls to around 1.4295 in the late American session on Tuesday as the US Dollar weakens against the Canadian Dollar following a decline in US manufacturing data.
- GBP/USD remained steady near 1.2900 on Tuesday as investors await President Trump's tariff announcements scheduled for Wednesday.
- Gold prices dipped 0.28% after a rally on Tuesday, with traders cautious ahead of the April 2 tariff announcement.
- Federal Reserve Bank of Chicago President Austan Goolsbee noted that while US hard data remains strong, soft data is declining, leading to uncertainty and fear about inflation.
Fundamental Analysis
- Major economic events include Trump's threats of reciprocal tariffs on Russia, changes to repo rates by the RBA, and upcoming tariff announcements from the Trump administration.
- Key macroeconomic trends affecting forex markets include falling US manufacturing data, rising crude oil prices, and concerns about potential impacts of tariffs on global economies.
Technical Analysis
- EUR/USD is trading within a technical range, with buyers struggling to push higher and short pressure limited.
- The AUD/USD pair was trading 0.16% higher following the RBA's announcement on repo rates.
- The USD/CAD pair falls to around 1.4295 due to weak US manufacturing data and rising Crude Oil prices.
- GBP/USD is consolidating below 1.3000, with bullish trendlines intact.
- Gold's uptrend remained intact, but technical indicators suggested a possible retracement.
Conclusion
- The market is currently facing uncertainty due to impending tariff announcements from the Trump administration.
- Key trading opportunities may arise from reactions to these tariff announcements and their potential impacts on global economies.
- Investors should closely monitor major economic events and data releases for potential market movements.
