AUD/USD steady just above 0.72 ahead of RBA

Another non-starter from the RBA expected in early Asia.
Interest rate hikes are still seen as a far-off dream for Aussie bulls.

Joshua Gibson FXStreet

The AUD/USD heads into Tuesday's early overnight session after cycling near the 0.7200 figure through Monday's trading as Antipodean traders gear up for another showing from the Reserve Bank of Australia (RBA). The Aussie is trading up into 0.7225

The RBA is set to come in for a landing with their latest Rate Statement at 04:30 GMT early Tuesday, though with the Australian central bank set to remain steady on rates for the foreseeable future, traders will instead be looking into the finer details of the RBA's statement, looking for adjustments to the bank's rhetoric as central planners react to unfolding Australian economic data.

Little else remains on the economic calendar for the AUD this week, and traders will be gearing up for another Non-Farm Payrolls Friday, as well as another high-impact speech from the US Fed's Jerome Powell, which is due later today at 16:45 GMT.

AUD/USD levels to watch

The key element for early Tuesday is the RBA, and according to FXStreet's own Valeria Bednarik, "the pair heads into the key event with a neutral-to-bearish technical stance according to technical readings in the 4 hours chart, as beyond the mentioned Fibonacci resistance, the pair was also unable to recover above a bearish 20 SMA, which extends its decline below the 200 SMA. Technical indicators in the mentioned chart hover around their midlines, with modest upward slopes that fell short from confirming an upward extension ahead."

Support levels: 0.7190 0.7155 0.7120

Resistance levels: 0.7255 0.7300 0.733

Author

Joshua Gibson

FXStreet

Joshua joins the FXStreet team as an Economics and Finance double major from Vancouver Island University with twelve years' experience as an independent trader focusing on technical analysis.

EUR/USD stays weak near 1.1850 after dismal German ZEW data

EUR/USD remains in the red near 1.1850 in the European session on Tuesday. A broad US Dollar bullish consolidation combined with a softer risk tone keep the pair undermined alongside downbeat German ZEW sentiment readings for February.

GBP/USD holds losees near 1.3600 after weak UK jobs report

GBP/USD is holding moderate losses near the 1.3600 level in Tuesday's European trading. The United Kingdom employment data suggested worsening labor market conditions, bolstering bets for a BoE interest rate cut next month. This narrative keeps the Pound Sterling under bearish pressure.

Gold pares intraday losses; keeps the red above $4,900 amid receding safe-haven demand

Gold (XAU/USD) attracts some follow-through selling for the second straight day and dives to over a one-week low, around the $4,858 area, heading into the European session on Tuesday.

Canada CPI expected to show sticky inflation in January, still above BoC’s target

Economists see the headline CPI rising by 2.4% in a year to January, still above the BoC’s target and matching December’s increase. On a monthly basis, prices are expected to rise by 0.1%.

UK jobs market weakens, bolstering rate cut hopes

In the UK, the latest jobs report made for difficult reading. Nonetheless, this represents yet another reminder for the Bank of England that they need to act swiftly given the collapse in inflation expected over the coming months.

Stellar mixed sentiment caps recovery

Stellar price remains under pressure, trading at $0.170 on Tuesday after failing to close above the key resistance on Sunday. The derivatives metric supports the bearish sentiment, with XLM’s short bets rising among traders and funding rates turning negative.