Here is what you need to know on Tuesday, April 6:
The market mood is somewhat cautious as China is reportedly curbing credit while mixed reports about US stimulus also give investors a pause after sending US stocks to record highs. AUD/USD is edging higher after the RBA and several figures are eyed.
One day after the S&P 500 and the DJIA hit record highs, Asian stocks and US futures are on the back foot amid worries that China would curtail loan growth, to prevent credit bubbles. The cooling may last until the end of the year. On the other hand, the Caixin Services Purchasing Managers' Index beat estimates with 54.3, showing robust activity in China.
Safe US bonds are finding fresh demand, pushing yields and the dollar lower. EUR/USD is settling above 1.18 and GBP/USD is changing hands around 1.39. Sterling is also benefiting from the British government's announcement that it will proceed with the reopening plan on April 12. However, the UK remains hesitant about allowing international travel.
US stimulus: Democrats will be able to pass President Joe Biden's infrastructure program via the quick reconciliation process, providing relief for markets. Investors also cheered comments from Senator Joe Manchin, who ejects an increase of the corporate tax rate to 28% but agrees to 25%. Deliberations within the ruling party are critical to passing the bill, as Republicans oppose it.
Monday's rally was partially fueled by recent upbeat figures from the US. After Nonfarm Payrolls showed an increase of 916,000 jobs in March, the ISM Services PMI hit 63.7, the highest on record. Tuesday's economic calendar features the JOLTs Job Openings report.
AUD/USD is changing hands around 0.7650 after the Reserve Bank of Australia left rates unchanged as expected. The Canberra-based institution released no hints about the future of its bond-buying scheme.
The total value of cryptocurrencies reached a peak of $2 trillion, only shortly after topping the $1 trillion mark. While Bitcoin remains below $60,000, Ethereum broke higher and tops $2,100 and XRP is above $0.80.
Gold is hovering around $1,735, holding onto gains made last week.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.