March 02, 2022
GBP/USD: The Great Britain pound fell against the US dollar on Tuesday due to a fresh wave of risk aversion after the G7 said it was ready to impose further financial pressure on Russia. Yesterday the UK published the Markit Manufacturing PMI, which came in better than expected in February and a number of other minor figures. The most notable calendar events this week are in the US. Fed Chair Jerome Powell will testify before Congress on Wednesday and Thursday and NonFarm payrolls will be released on Friday. As was the case with Tuesday’s strong ISM Manufacturing report that offered some modest support to the US dollar, data this week should point to continued US economic strength. But all of these events are set to play second fiddle to broader geopolitical developments. The local resistance level can be seen at 1.3355. If the pair reaches this level and rebounds, it can trigger a further decline towards 1.3265.
AUD/USD: The Australian dollar fell slightly against the US dollar on Tuesday. Nevertheless, the pair has support from surging prices for oil, gas, coal and grains. Australia published the Gross Domestic Product data this night which was better than market expectations. GDP rose 3.4% this quarter and this rise followed a fall in the previous quarter. The emergence of the Omicron variant over the second half of December 2021 did not have a material impact on activity this quarter. The local resistance level can is located at 0.7290. A breakout to the upside can trigger growth to 0.7360.
Gold: Gold prices rose on Tuesday as investors flocked into safe-haven assets. The headlines of negotiations between Russia and Ukraine on Monday increased investors’ risk appetite as a firmer truce initiative between the nations was highly expected. However, the unavailability of any material outcome turned investors risk-averse again. The nations are likely to return to the negotiating table this week. Gold can correct to $1,926, and after that, the price will probably continue its upward movement towards $1,980.