This is what you need to know to trade today Tuesday, April 6:
Market sentiment is somewhat cautious as China is reportedly holding back credit, while mixed news on US stimulus also gives investors a pause after sending US stocks out. to all-time highs. AUD / USD is rising a bit after the RBA.
One day after the S&P 500 and DJIA hit all-time highs, Asian equities and US futures are on the defensive amid concerns that China will reduce loan growth to avoid credit bubbles. The cooling can last until the end of the year. On the other hand, Caixin’s services PMI purchasing managers index beat estimates with 54.3 points, showing strong activity in China.
Safe US bonds are finding new demand, pushing yields and the dollar lower. EUR / USD is settling above 1018 and GBP / USD is trading around 1.39. The pound is also benefiting from the British government’s announcement that it will continue with the reopening plan on April 12. However, the UK remains hesitant to allow international travel.
American stimulus: Democrats will be able to pass President Joe Biden’s infrastructure program through the speedy reconciliation process, bringing relief to markets. Investors also welcomed comments from Senator Joe Manchin, who rejects an increase in the corporate tax rate to 28% but accepts 25%. Deliberations within the ruling party are critical to passing the bill, as Republicans oppose it.
Monday’s rally was fueled in part by recent upbeat US data. After NFP nonfarm payrolls showed an increase of 916,000 jobs in March, ISM’s services PMI reached 63.7 points, the highest on record. Tuesday’s economic calendar features the JOLTs job vacancy report.
The AUD/USD It is trading around 0.7650 after the Reserve Bank of Australia left rates unchanged as expected. The Canberra-based institution gave no clues about the future of its bond-buying program.
The total value of the cryptocurrencies it reached a peak of $ 2 trillion, only shortly after breaking the $ 1 trillion level. While Bitcoin remains below $ 60,000, Ethereum broke higher and surpasses $ 2,100 and XRP is above $ 0.80.
The oro hovering around $ 1,735, clinging to the gains made last week.
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