This is what you need to know to trade today Tuesday June 6:
The Australian dollar outperforms its rivals early on Tuesday after the unexpected decision by the Reserve Bank of Australia (RBA) to raise the official interest rate by 25 basis points, up to 4.1%. The US dollar has a hard time finding demand as markets see a growing possibility that the Federal Reserve (Fed) will leave its key rate unchanged at the next meeting. Euro zone retail sales and the US IBD/TIPP economic optimism index. detacana in today’s economic calendar.
For the second meeting in a row, the RBA went against market expectations and opted for an increase in its monetary policy rate. In its monetary policy statement, the RBA reiterated that the Board remains committed to bringing inflation back to target, adding that further monetary policy tightening may be necessary. He AUD/USD It rallied strongly during the Asian session and is now up over 0.5% on the day, above 0.6650.
On Monday, the US ISM Services PMI reported a loss of momentum in service sector growth in May. In addition, the publication showed a contraction of employment in the sector along with a smoothing of input inflation. Meanwhile, the DXY Dollar Index came under further bearish pressure and erased its gains to close the day flat. In the European morning, the DXY index remains in negative territory slightly below 104.00 and the 10-year US Treasury yield consolidates Monday’s losses at around 3.7%.
He EUR/USD it staged a late bounce on Monday and closed the day above 1.0700. As of early Tuesday, the pair is trading up and down in a tight range in the absence of any new catalysts. On Monday, during her speech before the European Parliament in Brussels, the President of the European Central Bank (ECB), Christine Lagarde reiterated that there is no clear evidence that core inflation has peaked.
He GBP/USD erased most of its daily losses during the American session on Monday. The pair remains flat slightly below 1.2450 in the European session.
The price of Gold it benefited from falling US yields on Monday and posted modest daily gains. As of early Tuesday, XAU/USD is trading in a tight range near $1,960.
He USD/JPY it broke below 140.00 on Monday and extended its decline towards 139.00 during the Asian session on Tuesday. The Governor of the Bank of Japan, Kazuo Ueda, has said earlier in the day that QQE will continue until they reach the inflation target.
He Bitcoin came under strong selling pressure and lost more than 5% on Monday. BTC/USD consolidates its losses near $25,800 on Tuesday. He ethereum it is holding dangerously close to $1,800 in European morning after being down 4% on Monday.
Source: Fx Street
I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.
