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MTrading Team • 2023-04-18

AUDUSD cheers China data, RBA Minutes and slightly positive mood

AUDUSD cheers China data, RBA Minutes and slightly positive mood

Market turns dicey as the economic calendar gets active during early Tuesday. That said, the upbeat China data favors a risk-on mood and weigh on the Treasury bond yields, as well as the US Dollar. However, the cautious mood ahead of the US debt ceiling discussions, starting from tomorrow, prods the optimists.

Despite the mixed sentiment, the upbeat China GDP and hawkish RBA Minutes allow AUDUSD to lead the G10 currency pair buyers. Following that is the NZDUSD pair due to its ties with Beijing.

Further, the upbeat UK jobs report joins the softer US Dollar to propel the GBPUSD price whereas EURUSD comes in fourth in the line as traders await EU and German sentiment figures.

Moving on, Gold price pares recent losses and so do Brent Oil even as Asia-Pacific equities and US stock futures trade mixed of late.

With this, the leading cryptocurrencies, namely BTCUSD and ETHUSD pare the biggest daily loss in three weeks with mild gains.

Following are the latest moves of the key assets:

  • Brent oil recovers from one-week low to $85.00 after falling the most in a month.
  • Gold price also picks up bids around the $2,000 round figure, up 0.30% intraday at the latest.
  • USD Index snaps two-day recovery from one-year low, mildly offered near 101.80 by the press time.
  • Wall Street closed with minor gains while equities in the Asia-Pacific region traded mixed. However, shares in Europe and the UK seem indecisive during the initial hour.
  • BTCUSD and ETHUSD pare recent losses around $29,800 and $2,100 at the latest.
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US Dollar losses recovery momentum as key data/events loom

The recently positive US data and hawkish Fed talks renew chatters of the US central bank’s “higher rates for longer” phenomenon, which in turn previously allowed the US Dollar to recover from the one-year low. However, the latest cautious optimism joins the anxiety ahead of US debt ceiling discussions to prod the greenback buyers.

Not only the US Dollar’s retreats but the easing fears of the recession, backed by China numbers, allowed markets to remain positive and favored prices of Gold and Brent Oil. The same joins the RBA’s readiness for more rate hikes to propel the AUDUSD price.

Furthermore, the UK’s upbeat jobs data ignored impending geopolitical fears about China’s technological advancements and ties with Russia and fuelled the GBPUSD. Elsewhere, EURUSD pays little heed to the ECB policymakers’ indecision and cheers US Dollar’s pullback to print the first daily gain in three.

It should be noted that chatters about the firing of a crypto critique at the US SEC join the US Dollar weakness to allow the BTCUSD and ETHUSD to grind higher.

  • Strong buy: USDJPY
  • Strong sell: ETHUSD, GBPUSD
  • Buy: USD Index, USDCAD, Nasdaq, EURUSD
  • Sell: DAX, FTSE 100, gold, BTCUSD, AUDUSD

Multiple catalysts to watch

Be it the ZEW data for Eurozone and Germany or Canada’s inflation and BOC Governor Tiff Macklem’s speech, not to forget second-tier US housing data, today’s economic calendar is pretty thick and can entertain the market players, unlike the sluggish week-start. However, major attention will be given to the Fed concerns and PMIs to gain clear directions.

May the trading luck be with you!