05.03.2019: Traders keep long deals on USD on hold (USD, AUD, EUR, GBP)
Positive sentiment regarding the possibility to solve the US-China trade conflict was in the air as the latest trading session began. Asian stock indices rose, while the US dollar continues its rally to highs.
Optimism about the US-China relationship neutralized the negative effect caused by the RBA meeting’s accompanying statement. The AUD/USD pair kept on trading sideways near 0.7080.
The interest rate of the Reserve Bank of Australia remained unchanged at 1.50%. The regulator’s representatives mentioned the necessity of low rates in the current economic conditions, such as consistently low inflation and uncertainty about the prospects for consumer spending.
The euro/dollar pair is also stuck in the trading range consolidating near 1.1320, while investors are expecting the rhetoric of the European Central Bank to be soft as well. Its meeting is scheduled for Thursday. In the meantime, the positive statistics from Markit Economics caps efforts of bear traders.The services PMI of the region’s major economies turned out to be significantly higher than the preliminary estimations, forecasts and previous readings. Moreover, the composite indexes also exceeded the expectations. Nevertheless, market participants anticipate the central bank to have pessimistic assessment despite the evidence of a revival in the key sectors of the economy.
The UK services sector has also improved. Its PMI managed to reach 51.3 in February after the previous decline to its 2.5-year low. Notably, the index was expected to continue a downtrend and to drop below 50.
On the other side, the pound buyers stay cautious. Traders keep their long positions on hold awaiting Friday’s reports from the US labor market. The pound/dollar pair is trading around 1.3165.
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