Today's Hot Financial News

The US dollar faced another bout of disappointing US economic data, fueling speculation of an impending Fed rate cut. Meanwhile, both Gold and Silver soared to record highs in 2024. The greenback continued its retreat, remaining below the 104.00 mark on the USD Index (DXY), with all attention focused on Chair Powells testimony and the upcoming ADP report.

Here's what's unfolding on Wednesday, March 6:

AUD/USD traded defensively, dipping to around the 0.6520 region, then declined further following the release of Australia's Q4 GDP Growth Rate. The pair may test the immediate support level at 0.6481 if bearish sentiment persists.

NZD/USD showed signs of a bullish move but was easily swayed by bearish pressure, falling near the 0.6071 support level. The drop in the US Dollar (USD) and Treasury bond yields following weaker ISM services data provided temporary support to the pair.

EUR/USD maintained its bullish momentum, challenging the mid-February resistance at 1.0875, while investors await Germany's Balance of Trade and Eurozone Retail Sales reports today.

GBP/USD couldn't sustain Tuesday's gains, retracing back to the 50-moving average, with the UK anticipating the release of the S&P Global Construction PMI and Annual Budget.

The Bank of Canada is expected to keep rates unchanged, with attention on the Ivey PMI and Governor T. Macklem's press conference. USD/CAD rose, continuing to test the 1.3600 resistance.

USD/JPY retreated close to the 149.56 support level, with focus on Japan's weekly Foreign Bond Investment figures and a speech by BoJ Nakagawa. The pair remains in a range between 149.56 and 150.86 for the third consecutive week.

In commodities:

WTI prices remained subdued despite additional reforms in China and its planned GDP target, now trading below the $78.11 level.

Gold prices surged to a new high of $2,141.94, driven by growing anticipation of future Fed policy adjustments. The rally gained momentum as reports indicated a slowdown in business activity within the US services sector.

Silver continued its bullish momentum, aiming to push towards the $24.9 resistance level.

In US Stocks:

Tuesday saw a decline in Wall Street's primary indexes as they opened in the red. Tech shares experienced substantial losses, putting downward pressure on the NASDAQ. The S&P 500 index closed at $5,084.87, while the Dow Jones fell, ending at $38,598.40, and the NASDAQ retreated below the $17,960 support level.

The highly anticipated Super Tuesday primaries are happening today, with over a third of delegates up for grabs in both the Republican and Democratic races. President J. Biden remains the frontrunner for the Democratic nomination without facing any major primary challenge. Conversely, former President D. Trump leads the race for the Republican nomination, ahead of former UN Ambassador Nikki Haley.

Here's today's scheduled economic news and reports:

Wednesday, March 6

TENTATIVE - GBP - Annual Budget Release

09:00 GMT+2 - EUR - German Trade Balance

11:30 GMT+2 - GBP - Construction PMI

12:00 GMT+2 - EUR - Retail Sales m/m 

15:15 GMT+2 - USD - ADP Non-Farm Employment Change

15:30 GMT+2 - CAD - Labor Productivity q/q

16:45 GMT+2 - CAD - BOC Rate Statement

      CAD - Overnight Rate

17:00 GMT+2 - CAD - Ivey PMI

              USD - Fed Chair Powell Testifies

              USD - JOLTS Job Openings

17:30 GMT+2 - CAD - BOC Press Conference

              USD - Crude Oil Inventories

19:00 GMT+2 - USD - FOMC Member Daly Speaks