EUR/USD is holding higher ground near 1.0940 heading into early Europe. The pair is capitalizing on a fresh pullback in the US Dollar, as investors stay cautiously optimistic amid upbeat China’s growth numbers. German ZEW survey next in focus.
The GBP/USD pair has extended its recovery above the 1.2380 mark in the Asian session. The Cable is approaching the 1.2400 mark ahead of the release of the United Kingdom Employment data.
USD/JPY bulls struggle to keep the reins during a three-day winning streak amid early Tuesday. While portraying the same, the Yen pair eases from an intraday high, as well as the highest levels since March 15, to 134.50 at the latest. The latest chatters surrounding the Bank of Japan’s (BoJ) easy money policy seem to weigh on the Yen pair as the decision-makers try to defend the current policy amid challenges from bond buying and fiscal moves.
AUD/USD pares the first daily gains in three around 0.6710, after an initial jump to 0.6720, as strong China growth data joins RBA Minutes-led optimism during early Tuesday. That said, China’s Q1 GDP grows 2.2% QoQ versus 2.2% expected and 0.0% prior. Further, Retail Sales growth jumps 10.9% YoY in March versus 7.4% expected and 3.5% prior whereas Industrial Production eased below 4.0% expected growth figures to 3.9%, versus 2.4% previous readings. Earlier in the day, the latest Reserve Bank of Australia (RBA) Monetary Policy Meeting Minutes appear slightly hawkish as it said that the board considered a rate hike at the April meeting, before deciding to pause.
NZD/USD seesaws around 0.6180, recently easing from an intraday high, as bulls remain unconvinced despite upbeat China data during early Friday. The reason could be linked to the hawkish Fed bets and cautious mood ahead of Zealand Q1 Consumer Price Index (CPI).
The USD/CAD pair has gauged an intermediate cushion after a gradual correction to near 1.3380 in the Tokyo session. The Loonie asset needs support for a confident recovery to defend further downside. A supportive move to the Loonie asset has come from the US Dollar Index (DXY), which has also found a cushion near 102.00.
USD/CHF struggles to extend a two-day rebound from a multi-month low as it makes rounds to 0.8990-85 during early Tuesday. In doing so, the Swiss Franc (CHF) pair portrays the market’s inaction amid a cautious mood ahead of the key data from China, mainly important because of the latest recession talks.
Oil prices rose in Asian trade on Tuesday as stronger-than-expected GDP data from China boosted optimism over a demand recovery in the country, although fears of rising U.S. rates and a stronger dollar kept gains limited.
Gold price is finding its feet near the $2,000 mark, snapping a two-day corrective decline, as the United States Dollar (USD) retreats early Tuesday despite the mixed market sentiment. 21-Daily Moving Average guards the downside for XAU/USD within a potential bearish wedge.
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