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For the 24 hours to 23:00 GMT, the AUD rose 0.48% against the USD and closed at 0.7163.

LME Copper prices declined 0.4% or $23.0/MT to $6246.5/MT. Aluminium prices rose 0.6% or $11.0/MT to $1833.5/MT.

In the Asian session, at GMT0400, the pair is trading at 0.7165, with the AUD trading marginally higher against the USD from yesterday's close.

Overnight data revealed that Australia's Westpac leading index slightly dropped 0.01% on a monthly basis in January. The index had recorded a revised fall of 0.26% in the previous month.

The pair is expected to find support at 0.7120, and a fall through could take it to the next support level of 0.7076. The pair is expected to find its first resistance at 0.7193, and a rise through could take it to the next resistance level of 0.7222.

Moving ahead, investors would closely monitor Australia's CBA manufacturing and services PMI's for February, scheduled to release overnight.

The currency pair is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Gold rose 1.09% against the USD and closed at USD1344.10 per ounce, amid broad weakness in the US dollar.

In the Asian session, at GMT0400, the pair is trading at 1347.10, with gold trading 0.22% higher against the USD from yesterday’s close.

The pair is expected to find support at 1332.07, and a fall through could take it to the next support level of 1317.03. The pair is expected to find its first resistance at 1355.97, and a rise through could take it to the next resistance level of 1364.83.

The yellow metal is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Silver rose 1.05% against the USD and closed at USD15.95 per ounce, tracking gains in gold prices.

In the Asian session, at GMT0400, the pair is trading at 16.01, with silver trading 0.41% higher against the USD from yesterday’s close.

The pair is expected to find support at 15.79, and a fall through could take it to the next support level of 15.58. The pair is expected to find its first resistance at 16.14, and a rise through could take it to the next resistance level of 16.27.

The white metal is trading above its 20 Hr and 50 Hr moving averages.

For the 24 hours to 23:00 GMT, Crude Oil traded flat against the USD and closed at USD55.94 per barrel.

In the Asian session, at GMT0400, the pair is trading at 56.23, with oil trading 0.52% higher against the USD from yesterday’s close.

The pair is expected to find support at 55.55, and a fall through could take it to the next support level of 54.87. The pair is expected to find its first resistance at 56.65, and a rise through could take it to the next resistance level of 57.07.

Crude oil is trading above its 20 Hr and 50 Hr moving averages.

Entering into European session, Canadian Dollar is so far the strongest one for today as supported by resilience in oil prices. WTI is staying firm at around 56.5 level. Dollar is the second strongest but it's merely paring back some of yesterday's steep decline. The greenback is pressured by Fed rate outlook as well as falling treasury yields. New York Fed John William's comments indicates he's comfortable on keeping interest rate unchanged until there is a change in economic outlook. Dollar and treasuries will look into FOMC minutes to be released later in the day.

Staying in the currency markets, New Zealand Dollar pares back some of recent rebound after mixed PPI. Yen follows as the second weakest as Asian stocks, except China, extends recent rally. Sterling is the third weakest one so far.

In Asia:

• Nikkei closed up 0.60%.
• Hong Kong HSI is up 0.95%.
• China Shanghai SSE is down -0.01%.
• Singapore Strait Times is up 0.44%.
• Japan 10-year JGB yield is down -0.005 at -0.035.

Overnight:

• DOW rose 0.03%.
• S&P 500 rose 0.15%.
• NASDAQ rose 0.19%>
• 10-year yield dropped -0.019 to 2.647.
• 30-year yield dropped -0.006 to 2.991.

One thing to note is that 5-year yield at 2.458, is below 6-month yield at 2.501. Yield curve is getting more inverted again.

UK Prime Minister Theresa May is going to Brussels today to seek legal binding changes to Irish border backstop arrangement. But there is little chance for EU to change their stance. European Commission President Jean-Claude Juncker was quoted by an aide saying "I have great respect for Theresa May for her courage and her assertiveness. We will have friendly talk tomorrow but I don't expect a breakthrough."

UK Chancellor of Exchequer Philip Hammond was also quoted telling a manufacturing association that "the so-called 'Malthouse' initiative to explore possible alternative arrangements to the backstop is a valuable effort..". However, he added, "it is clear that the EU will not consider replacing the backstop with such an alternative arrangement now in order to address our immediate challenge."

New York Fed President John Williams said in a Reuters interview that he's comfortable with the current interest rate level. He described the current federal funds rate, at 2.25-2.50%, as being "around my view of what neutral interest rates are". And "monetary policy is where it should be".

He noted that a shift in economic outlook is needed for Fed to resume the rate hike cycle. Nevertheless, he added "I don't think that it would take a big change, but it would be a different outlook either for growth or inflation".

Regarding balance sheet reduction, Williams noted it could end when bank reserves hit "maybe $1 trillion of reserves or somewhat more than that". That's only around USD 600B below current levels. He added, the figure is "a guess today of the amount of reserves that will be held in the system in the future - but again we are learning and will get a finer touch on that."

Trump indicated once again in the oval office yesterday that he's flexible to change the March 1 trade truce with China. He said the negotiations are "very complex talks" but they're "going very well". He added that "I can't tell you exactly about timing, but the date (March 1) is not a magical date. A lot of things can happen."

Regarding the possibility of raising tariffs on Chinese imports further, Trump said "I know that China would like not for that to happen, so I think they're trying to move fast so that doesn't happen."

China Foreign Ministry emphasized in a statement that "The U.S. side should recognize that China's development is in the world's interest, as well as the United States'. Only by seeing China's development as an opportunity for the United States can this help resolve certain problems, including trade and economic ones."

And, "As long as China and the United States proactively meet each other halfway, then trade and economic cooperation can still play a role as a ballast stone in Sino-U.S. ties."

EUR/USD formed support near the 1.1250 level and later bounced back above 1.1320. USD/CHF started a major decline and broke the 1.0040 and 1.0020 support levels.

Important Takeaways for EUR/USD and USD/CHF

• The Euro formed a solid support near the 1.1250 level and rebounded against the US Dollar.
• There was a break above a major bearish trend line with resistance near 1.1330 on the hourly chart of EUR/USD.
• USD/CHF started a downside move and traded below the 1.0060 support.
• There is a major bearish trend line formed with resistance at 1.0045 on the hourly chart.

EUR/USD Technical Analysis

After a major decline, the Euro found support near the 1.1250 level against the US Dollar. The EUR/USD pair formed a solid support base near 1.1250 and later started a decent rebound.

The pair traded above the 1.1275 and 1.1300 resistance levels before correction lower. A new swing low was formed at 1.1275 on FXOpen before the pair started a fresh upward move. It broke the 1.1320 resistance and the 50 hourly simple moving average.

During the rise, there was a break above a major bearish trend line with resistance near 1.1330 on the hourly chart of EUR/USD. The pair even traded above the 1.1350 level and formed a high at 1.1357.

At the moment, the pair is correcting lower towards the 23.6% Fib retracement level of the last wave from the 1.1275 low to 1.1357 high. On the downside, there are many supports near the 1.1320 level and the broken trend line.

The main support is near the 1.1315 level and the 50 hourly simple moving average. It coincides with the 50% Fib retracement level of the last wave from the 1.1275 low to 1.1357 high.

Therefore, if the pair corrects lower, there are chances of a strong buying interest near the 1.1320 and 1.1315 levels. On the upside, the 1.1350 and 1.1360 levels are crucial hurdles for buyers. If there is a proper break above 1.1360, the pair could trade towards the 1.1400 level in the near term.

USD/CHF Technical Analysis

The US Dollar faced a strong selling interest near the 1.0090 and 1.0100 levels against the Swiss franc. The USD/CHF pair topped near the 1.0090 level and later started a major downside move.

The pair broke the 1.0060 and 1.0040 support levels to enter a bearish zone. Sellers even pushed the pair below the 1.0020 support and the 50 hourly simple moving average. A low was formed at 1.0002 and the pair is currently correcting higher.

It is testing the 23.6% Fib retracement level of the last decline from the 1.0060 high to 1.0002 low. However, the main resistance is near the 1.0035 and the 50 hourly simple moving average.

There is also a major bearish trend line formed with resistance at 1.0045 on the hourly chart. Below the trend line, the 50% Fib retracement level of the last decline from the 1.0060 high to 1.0002 low is at 1.0031.

Therefore, if the pair corrects higher, it could face a strong selling interest near the 1.0030 and 1.0040 levels. Once the current correction wave is complete, there are chances of a fresh decline below the 1.0010 and 1.0000 support levels in the near term.

STOCKS

Dow Jones and the Asian indices Nikkei and Shanghai remain bullish and can move further higher while the DAX continues to look mixed. Sensex and Nifty are in danger of further fall as the sell-off in the Indian indices intensifies.

Dow Jones (25,891.32, +8.07, +0.03%) can test the psychological resistance level of 26,000 in the near-term and can surge to 26,200-26,300 on a break above it thereafter.

DAX (11,309.21, +10.01, +0.09%) remains mixed as it continues to oscillate around 11,300. A failure to gain momentum from current levels can pull the index lower to 11,000 in the near term. The index can broadly remain range bound between 11,000 and 11,400

Nikkei (21,452.25, +149.60, +0.70%) retains its momentum and can head further up towards 21,600-21,700.

Shanghai (2,756.06, +0.42, +0.015%) can see an intermediate dip to 2,730 if it fails to breach 2,765 - the 200-day moving average. But the overall outlook remains bullish and an eventual break above 2,765 will pave way for a test of 2,800.

Sensex (35,352.61, -145.83, -0.41%) and Nifty 50 (10,604.35, -36.60, -0.34%) failed to sustain the intraday bounce on Tuesday. Sensex has declined below the key support level of 35,500 and can fall further to test 35,000 in the coming days. Nifty 50 hovers just above the crucial support level of 10,600. It looks vulnerable to break it and fall towards 10,450 in the coming days.

COMMODITIES

Oil remains stable with a possibility of a corrective fall before the overall uptrend resumes. Gold, Silver and Copper retains the bullish view and have risen sharply on the back of the weakness in dollar.

Gold (1,343) has risen sharply and is heading towards 1,350-1,360 as expected. Intermediate resistance is at 1,345 a break above which will pave for this rally. Silver (16) is likely to test 16.20 in the coming days.

Copper (2.87) has surged to 2.87 as expected. A crucial trendline as well as the 100-week moving average resistance is poised around 2.89. Inability to break it can trigger a pull-back move to 2.85 or 2.83 in the coming days.

WTI (56.17) and Brent (66.15) remains stable around 56 and 66 respectively. The broader view remains bullish remains intact. WTI can test 58-60 and Brent can rise to 68-70 in the short term. However, a corrective fall to 64.5-64 on Brent and 54.5-54 on WTI cannot be ruled out in the near term before we see the next rally.

FOREX

US Dollar is looking weak for the near term. Currencies could trade in the positive for the next 1-2 sessions. Pound, Aussie, Euro and Dollar-Yen are all heading towards near term resistances from where they could face rejection in the medium term.

Dollar-Index (96.44) is trading lower as expected and is heading towards 96.00. A short bounce from 96 is possible while the medium term could see a test of 95. View remains bearish.

Euro (1.1351) is rising towards 1.1375 which is the 21-MA on the daily charts. A rejection from 1.1375 could push back Euro towards 1.13 or lower again. Watch price action near 1.1375.

Euro-Yen (125.79) is heading towards immediate resistance at 126 and a rejection from there looks likely in the near term pushing the pair back towards 124-123 levels.

Dollar Yen (110.81) has some scope of rising towards resistance at 111.50 in the near term before coming off from there. Near term looks bullish just now.

Pound (1.3070) has risen sharply after Theresa May's spokesman said that the meeting between UK and European commission President Jean-Claude Juncker would be significant. While markets are optimistic on Brexit negotiations, Pound could test 1.31-1.32 on the upside before coming off from there in the medium term. Note that immediate resistance is seen at 1.31 and higher at 1.32.

Aussie (0.7173) has also risen and has some room on the upside towards resistance at 0.7250.

USDCNY (6.7221) has come off sharply and looks bearish for the near term. Support on the daily chart is seen at 6.70 from where the pair may bounce back in the medium term.

Dollar Rupee (71.35) could come down towards 71 while 71.50/60 holds. Weaker US Dollar could sustain for a couple of sessions more, aiding some strength in the currencies. At the same time if the yield and crude prices rise, Dollar-Rupee could be forced to move back to 71.50/60 again.

INTEREST RATES

The US yields are almost stable and have some room on the downside to test immediate support levels. The 2Yr (2.50%), 5Yr (2.47%), 10Yr (2.64%) and 30Yr (2.98%) are down 1-2 bps from levels seen on Monday but could come off towards 2.47%, 2.44%, 2.60% and 2.95% respectively.

The German-JGB 10Yr (0.14%) has risen as expected but could trade sideways within 0.15-0.12% region for some time.

The US-JGB 10YR (2.68%) is above immediate support levels and look bullish towards 2.80% for the medium term, indicating a possible rise in the Euro.

The 10Yr GOI (7.5804%) could remain below 7.60% for a few sessions before resuming its rise towards 7.65/70% in the longer run.