Morning wrap

  • US indices finished yesterday’s session significantly lower as Trump’s move to restore steel tariffs spooked investors. Nasdaq was the top loser as it closed 1.13% lower. S&P 500 dropped 0.86% while Dow Jones moved 0.96% lower

  • Moods in Asia are poor as well with Korean, Japanese and Australian indices dropping. On the other hand, most of the Chinese indices trade slightly above yesterday’s closing prices

  • According to Global Times, China will publish a list of unreliable entities soon. US companies from the list could be subject to sanctions

  • The United States proposed tariffs on $2.4 billion of French goods, including wines and cheese, in response to tax on digital revenues proposed by France. Digital tax would be a hit to the US tech companies like Apple or Google. Tariff rate is said to be as high as 100%.

  • RBA held rates unchanged and said that some risks to the economy have lessened. Odds for a rate cut in February declined and AUD is the top performing G10 currency on Tuesday morning

  • According to Reuters report, Japan is preparing a stimulus package totalling $120 billion in order to support the economy and finance infrastructure projects aimed at coping with natural disasters

  • Oil is trading higher as some reports surfaced saying that OPEC may go for an additional 400k bpd output cut. Saudi Arabia is said to be among proponents as it seeks positive surprise to the oil market ahead of Saudi Aramco IPO

AUDUSD is surging after RBA struck an upbeat tone. The pair is approaching the resistance zone ranging above the 0.6860. However, 200-session moving average (purple line) can be considered key resistance to watch as it has limited upward moves of the pair for the past year and a half. Source: xStation5

Bearish signal on DE30
Economic calendar: UK supplementary budget and EIA report
Morning wrap
Daily summary: Stocks decline while gold is approaching the $1,800.00 mark
Daily summary: European shares decline in quiet trading session
When performing transactions in the OTC Forex market, the possibility of making a profit is inextricably linked with the risk of losses.