The US dollar has traded generally on a firm note on Tuesday, underpinned by hopes of progress in the proposed tax cuts in the US although US treasury yields are lower and testing key support, which if broken could take some steam out of further upside momentum, currently reflected in a slightly softer US$Jpy. Aside from the US$, the Aud is a weak performer today following the RBA Meeting yesterday, which left rates unchanged – as expected. In other markets, stocks made another new high but then reversed as traders took profit in tech stocks, while the metals also reversed the gains of the previous session, finishing down around 0.4%. WTI made a new 2 year high at 57.66 and has spent the rest of the session consolidating just below there.
For the most part Wednesday will be rather devoid of meaningful data so it could end up being another relatively sideways day. The AUD$ could see some action though with the release of the China Trade Balance (exp. +39.5 bio Exports +7.2%, Imports +16%). Otherwise, the ECB Non-Monetary Policy Meeting minutes will be released, while oil traders will want to look out for the EIA weekly crude oil stock change.
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