Markets face a volatile week as central bank decisions and trade tensions take center stage. The Reserve Bank of Australia (RBA) is expected to hold rates at 4.35%, while the Reserve Bank of New Zealand (RBNZ) may cut by 50bps to 3.75%, potentially strengthening the Australian dollar against the New Zealand dollar.
Meanwhile, the U.S. has imposed a 25% tariff on steel and aluminium, escalating trade tensions with Canada and China. Retaliation could disrupt supply chains, fuel inflation, and weigh on equities, while boosting the U.S. dollar. Traders should watch these key developments for shifts in currency and risk sentiment.
NASDAQ waiting for news?
Market sentiment remains mixed, influenced by inflation concerns, Federal Reserve policy, and US tariffs. While strong tech earnings from Nvidia and Microsoft have provided support, rising Treasury yields have tempered enthusiasm. The index must hold 21,373 support to maintain bullish momentum, with resistance near 22,133. The outlook depends on upcoming inflation data and Fed statements for direction.
Investors watching UK Labour data for Sterling clues.
The GBP/USD pair is trading around 1.2455, with recent movement driven by economic data and central bank expectations. The British pound has remained relatively stable, whereas the U.S. dollar has been stronger due to persistent inflation concerns, which could lead the Federal Reserve to keep interest rates higher for longer. This has made the dollar more attractive to investors. Continued dollar strength or weaker UK data could send the pair lower.
USD capping Gold's shine?
Gold is trading around $2,917 per ounce, rebounding from a dip to $2,880 amid geopolitical tensions and economic uncertainty. Inflation concerns and Federal Reserve policy have capped upside movement, as higher rates strengthen the U.S. dollar, making non-yielding assets like gold less attractive. Strong safe-haven demand, however, has helped sustain prices. Key resistance is at $2,942, with further upside toward $3,000 if momentum holds.
Markets are on edge with central bank moves, trade tensions, and inflation shaping the week ahead. Stay informed with our daily updates to navigate the market swings!
